A US financial services company has launched a trade finance programme that it claims contains products that could provide cash flow improvements and other benefits to importers currently paying on letter of credit (L/C) or cash terms.

First Capital says its Trade Payable Discounting (TPD) programme adds to its suite of new international supply chain finance solutions launched this year.

L/C offering

The Florida-based company already offers commercial L/Cs to facilitate international trade payment and contractual compliance. It also offers standby L/Cs used as a guarantee of payment of financial obligations or performance of services.

But First Capital reckons its TPD programme can provide global importers with some distinct advantages.

Advantages

Using this programme, importers can improve their cash flow and increase their financial leverage by obtaining extended, unsecured payment terms from foreign suppliers instead of using L/Cs or paying cash according to First Capital.

It says that importers also gain from price discounts resulting from early payment options in this facility.

Three solutions

First Capital says the new programme is the third in a series of new international trade solutions the company is unveiling this year.

A Pre-Delivery Guaranty programme and an Export Factoring programme were launched earlier this year.

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