Trade Finance

Yapi Kredi is one of the most active banks in Trade Finance providing its customers with wide range of trade-related products through over 2000 correspondents.

All trade finance products are processed by experienced and specialized staff and high-tech systems:

Traditional Trade Finance Activities

• Advance Payment
• Import and Export Letters of Credit
  • Sight
  • Deferred
  • Acceptance
• Import and Export Cash Against Documents
• Import and Export Cash Against Goods
• Stand-by Letter of Credit

A kind of letter of credit under which payment can be claimed by presenting the documents required in the credit, generally a sight draft or a written statement, in case the principal does not comply with its obligations to the beneficiary. This instrument can be used to guarantee payments or performances such as:

• repayment of loans or advances
• fulfill contracts/subcontracts
• timely payment of invoices on open account basis

Stand-by letter of credit can be issued to be subject to either UCP 500 or ISP 98.

• Letter of Guarantee

  instrument in which a Bank, as the guarantor, guarantees an obligation of the principal against the beneficiary such as:

  • tender guarantees (bid bonds)
  • performance guarantees
  • advance payment guarantees
  • payment guarantees

Letters of guarantees are generally subject to the Local Law of the country in which they are issued.

• Pre-export Financing

Loans extended to exporters before shipment for financing for the time being their exports, in accordance with domestic regulations. The maximum term for such credits is 18 months.

• Discounting of Import Letter of Credit

Payment of deferred payment or acceptance import letter of credits to the beneficiary on sight basis or at any moment up to the maturity date at a pre-agreed discount rate.

• Discounting of Export Letter of Credit

Payment of deferred payment or acceptance import letter of credits to the beneficiary on sight basis or at any moment up to the maturity date at a pre-agreed discount rate.

• Postfinancing
• Forfaiting

Export Credit Agency Facilities

Yapi Kredi has a prominent role in the Turkish Market in terms of its activities in arranging the Export Credit Agency (ECA) Loans for its customers. Being committed to the real economy, Yapi Kredi supports the investments in the country and thus acts as a guarantor when Turkish clients want to buy investment goods from abroad.

Yapi Kredi has an extensive correspondent bank network and therefore has concluded framework agreements with a lot of banks for the ECA covered business. We were the first bank to introduce HERMES and Korea Exim (KEXIM) to the market and today we work with all the ECA institutions that our clients have to do business with. Yapi Kredi is one of the most active banks in terms of business volume with HERMES, SACE, ERG, COFACE and KEXIM which proves its commitment to financing the growing Turkish economy.

Not only does Yapi Kredi market its clients abroad, it also does extensive marketing of the ECA products to its branches and customers in order come up with different solutions for specific financing needs and therefore earns its reputation as one of the best Trade Finance Banks in Turkey.

GSM Facilities

As part of our structured trade finance solutions, we facilitate Letters of Credit supported by the U.S. Department of Agriculture (USDA) Commodity Credit Corporation (CCC) Export Credit Guarantee Program (GSM-102), designed to support the financing of eligible U.S. agricultural exports.

The program provides payment guarantees for eligible transactions, enabling the financing of imports of eligible U.S. agricultural commodities and food products through participating financial institutions. Subject to applicable program, country and transaction requirements, financing can be structured for up to 18 months through Letters of Credit issued by Yapı Kredi.