The Trade Finance Bond (TFB) is an individual trade guarantee that supports companies in the trade of goods and services, thanks to the instrument of the SBLC (Stand-by Letter of Credit) according to the rules of the International Chamber of Commerce.
In international trade, the risk of payment default is one of the major concerns. The countries of sub-Saharan Africa are particularly exposed to this risk, however, trade activity is becoming more and more democratized there. The volume of transactions carried out internationally is exploding.
When you are a bank, how can you protect yourself against the risk of non-payment by your customers for trade carried out on the other side of the world?
ETC – Export Trading & Cooperation, offers its trade guarantee (the TFB) to cover this risk of payment default.
Trade Finance Bond abbreviated as “TFB” designates guarantee coverage on a short-term loan relating to a trade operation, in particular stock financing or trade.
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Formula :APR = (AF/T) + (IF/T) + CF
Caption:
APR = Annual Percentage Rate
AF = Application Fees (Indicative rate 1% flat)
IF = Issuing Fees (Indicative rate 0.5% flat)
T = Tenor (year)
CF = Commitment Fee (Annual rate according to Financial Rating*)
* See table
