NIMB Bank Trade Finance: Your Global Partner for Nepalese Importers & Exporters
1st June 2025, Kathmandu
NIMB Bank offers a broad suite of trade finance services tailored for Nepalese importers and exporters. These services help businesses handle trade transactions smoothly.
NIMB Bank Trade Finance
Whether you are buying goods from abroad or selling products overseas, NIMB is your trusted partner. The bank continues to grow its network of correspondent banks worldwide, making international trade more accessible and efficient.
Import Services Tailored to Your Needs
When importing goods, managing payments and documentation can be complex. NIMB simplifies this process by offering various reliable tools.
Import Letter of Credit (LC)
Letters of Credit are essential in international trade. They act as a payment guarantee from the buyer’s bank to the seller. NIMB assists importers in opening and managing Import LCs. This ensures the seller gets paid once all contract conditions are met. It reduces risks for both parties. Importers can confidently place orders knowing their payment terms are secured by the bank.
Import Documentary Collection: DAP and DAA
For those seeking simpler payment methods, Documentary Collection is a cost-effective alternative to LCs. It involves exchanging shipping documents for payment.
Document Against Payment (DAP): Here, the importer pays the bank first. Then the bank releases shipping documents so the importer can receive the goods.
Document Against Acceptance (DAA): The importer agrees to pay at a later date, usually agreed upon beforehand. The bank releases documents after the importer’s promise to pay.
Though less secure than an LC, Documentary Collection costs less and requires less paperwork. NIMB guides clients to pick the best fit.
Advance Payment for Imports
Sometimes sellers require an advance payment before shipment. NIMB facilitates this through swift and secure transfer methods like SWIFT Telex Transfer. Importers pay in advance, ensuring prompt processing and shipment from the seller’s side.
Export Solutions to Boost Your Business
Exporters also benefit from NIMB’s range of services that protect payments and help cash flow.
Export Letter of Credit (LC)
Exporters receive Letters of Credit issued by the importer’s bank. NIMB authenticates and advises these LCs to the exporter. This gives exporters assurance of payment once they ship goods according to contract terms. The LC reduces uncertainty and improves trust in international sales.
Export by Advance Payment
Exporters sometimes receive payment before shipping. NIMB facilitates advance payments to help exporters fund production and shipping costs. This model reduces financial pressure on exporters.
Cash Against Documents (CAD)
Under CAD, exporters ship goods and documents directly to importers. Importers pay their banks to obtain the shipping documents. NIMB ensures smooth transaction flow, protecting exporters while enabling importers to receive goods after payment.
Financing Options for Trade
Trade finance loans from NIMB help businesses maintain healthy cash flows before and after shipping.
Trust Receipt Loan
This loan supports importers in financing raw materials or goods they intend to resell or use for manufacturing. It finances payments for documents under Import LCs or Documentary Collections. Usually, the loan term does not exceed 90 days, following Nepal Rastra Bank regulations. This quick finance option helps importers avoid cash crunches during import cycles.
Pre-shipment Loan (Packing Credit)
Pre-shipment loans provide working capital to exporters before shipment. They cover costs for raw materials, manufacturing, and packing. This financing ensures exporters meet production deadlines and ship on time. Exporters need to maintain steady operations.
Post-shipment Loan
Post-shipment loans fill the gap between shipping goods and receiving payment from buyers. Exporters often face payment delays. NIMB offers loans against export receivables, so exporters can continue operating without cash flow disruptions. Export proceeds repay the loan once received.
Bank Guarantees: Protecting Your Trade Commitments
Bank guarantees are powerful tools that assure performance and payments. NIMB offers various guarantees to help businesses handle contracts and customs smoothly.
Bid Bond (Tender Guarantee)
When bidding on contracts or tenders, bidders often need to provide a Bid Bond. This guarantee assures the contract owner that the bidder will accept the contract if selected. NIMB issues these guarantees, helping clients participate in tenders confidently. It protects the project owner against bidders who back out.
Performance Guarantee
After winning a contract, contractors must prove their ability to finish the project. Performance Guarantees issued by NIMB assure the beneficiary that the contractor will fulfill their obligations. This guarantee minimizes risks for clients in construction or supply agreements.
Advance Payment Guarantee
When a contractor receives advance payments, clients seek security. An Advance Payment Guarantee protects the client by ensuring the bank will repay if the contractor fails to deliver. NIMB issues these guarantees to build trust in advance payment deals.
Customs Guarantee / Bonded Warehouse Guarantee
Importers can defer customs duty payments using Customs Guarantees. NIMB issues these guarantees to Customs Offices for bonded warehouse facilities or special imports. They secure payments and allow smoother customs clearance. This is particularly useful for goods meant for exhibitions or temporary use.
Supplier’s Credit Guarantee
This guarantee secures suppliers who provide goods on credit terms. If the buyer fails to pay, NIMB covers the supplier’s receivable. This encourages suppliers to extend credit safely.
Counter Guarantee
In international trade, counter guarantees help secure deals across countries. NIMB issues guarantees backed by foreign correspondent banks. This ensures trust between parties in different countries.
Why NIMB Trade Finance Stands Out?
NIMB combines expertise, range, and reliability. Here’s why customers trust NIMB:
Comprehensive Services: NIMB covers all trade finance needs, from LCs to guarantees and loans.
Strong Global Network: The bank’s growing list of correspondent banks supports seamless cross-border trade.
Custom Financing: Loans are tailored for the unique cash flow challenges of importers and exporters.
Secure Transactions: Payment guarantees reduce financial risks and build trust.
Professional Guidance: NIMB’s experienced staff helps clients navigate complex trade documentation.
Conclusion: Grow Your Business Confidently With NIMB
Trade is a vital part of Nepal’s economy, and NIMB makes it easier and safer for businesses. Whether you are importing essential goods or exporting Nepali products worldwide, NIMB offers solutions designed for your success. From Letters of Credit and Documentary Collections to trusted bank guarantees and flexible loans, NIMB supports your trade journey. Choose NIMB Trade Finance for dependable service and peace of mind in every transaction.
For more: NIMB Bank Trade Finance
