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

The GSM product provides a long term financing for soft commodities. It is an instrument devised by the US Government in order to support its agricultural sector in the USA. Once again, Yapi Kredi is one the most ardent users of this program because of its large clientele network and enjoys high limits and exposure with CCC in this respect.

Yapi Kredi uses both the GSM -102 and the GSM-103 program in order to finance imports from the USA. The GSM-102 program offers 3 years of tenor whereas the GSM -103 program 7 years of financing. These programs are distinguished by the nature of the goods that are exported.

Once again, Yapi Kredi engages in active marketing of this products through its experienced staff and provides in-depth information to the interested parties.