What is Trade Finance?
Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. At Blackbow Consult, we provide comprehensive trade finance solutions including bid securities, performance guarantees, advance payment guarantees, and bank guarantees to support your business operations.
Our trade finance solutions are designed to bridge the gap between exporters and importers by introducing a third party to transactions to remove the payment risk and supply risk. We help businesses of all sizes to secure the financial backing they need to fulfill contractual obligations and expand their operations.
Trade finance also involves the discounting of Invoices for contracts/orders that have already been serviced while awaiting payments, providing you with the liquidity you need to continue your operations without delay.
Key Features
Our trade finance solutions offer a range of features designed to support your business needs.
Bid Securities/Bid Bonds
Guarantees provided to tendering institutions confirming bidders' capability to undertake projects.
Performance Guarantees
Written guarantees ensuring successful completion of awarded projects or contracts.
Advance Payment Guarantees
Guarantees securing upfront payments for jobs awarded but not yet executed.
Bank Guarantees
Assurances from lending institutions ensuring liabilities of debtors will be met.
Invoice Discounting
Converting outstanding invoices into immediate cash flow for your business.
Customized Solutions
Tailored financial instruments designed to meet your specific business needs.
Benefits of Our Trade Finance Solutions
Our trade finance solutions offer numerous advantages for businesses looking to secure contracts, fulfill obligations, and maintain healthy cash flow.
Increased Competitiveness: Ability to bid for and secure larger contracts that require financial guarantees.
Improved Cash Flow: Access to funds tied up in outstanding invoices, enabling better financial planning.
Risk Mitigation: Reduced financial risk through guarantees and assurances from reputable financial institutions.
Business Growth: Ability to take on more projects simultaneously with proper financial backing.
Credibility Enhancement: Increased trust from clients and partners through financial guarantees.
Case Study
Construction Company Secures Major Government Contract
A medium-sized construction company was invited to bid on a major government infrastructure project worth KES 50 million. The tender required a bid bond of 2% of the contract value.
Challenge: The company had the technical capability but lacked the financial guarantee required for the bid.
Solution: Blackbow Consult facilitated a bid bond through our banking partners, enabling the company to submit a compliant bid.
Result: The company won the contract and subsequently secured performance guarantees and advance payment guarantees through our services, successfully completing the project and growing their business significantly.
Required Documents
To process your trade finance application, we require the following documents:
Fully filled guarantee request form
Business registration certificate
ID and pin of the client
Copy of award letter/Contract
6 months Bank Statements with evidence of the receipts from past employers/procuring entities
Copies of past bid bonds, performance bonds, APG, award letters, ongoing contracts and letters of completion of works if any
"THE ROAD TO A SUCCESSFUL INVESTMENT IS NARROW AND LESS TRAVELLED, YOU NEED A TRUSTWORTHY PARTNER TO HELP YOU NAVIGATE."
At Blackbow Consult, we pride ourselves on being that trustworthy partner, guiding you through the complexities of trade finance to ensure your business success.
