Overdraft

Is a cost-effective way of credit facilities that allows customers of institutions and cooperates to draw beyond your credited balance, and up to a certain ceiling that is determined by your financial position and needs. The benefits of this account are:

• Possibility of withdrawal/ deposit for purposes specified .
• Providing customer claque book for withdrawal purposes.
• The interest is charged on the amount overdrawn, registered at the end of the
  month.

Commercial Loan

The commercial loan is one-time loan granted to clients, typically for specific purposes. The loan is repaid in monthly, quarterly, semi-annual, or annual installments as agreed upon with the customer. It ends once repaid in full.

Characteristics:

1. Loan value is consistent with the needs and size of the business.
2. Convenient monthly installments consistent with the size of your cash flow.
3. Interest rates on outstanding overdrawn balance.

Bank Guarantees

Bank guarantee is a type of contract issued by the bank, for certain beneficiaries, upon the clients’ request, who have entered a contract to purchase goods for supplier and promises to meet any financial obligations to the supplier in the event of default. Guarantees include those for participating in a tender as well as guarantees for performance, and customs, etc. The guarantee entails payment a certain amount to the order of the beneficiary if the guaranteed party does not abide by the purpose specified in the guarantee within a period that ends upon the expiry of the guarantee.

Letter of Credit

A letter issued by the bank to external exporters upon its importing clients to serve as guarantee for payments upon receiving the goods according to the specifications. There two types of these letters: Sight and Deferred Payments.

Bills receivable

They are promissory notes or drafts that are issued by an exporter (called the Withdrawer) to the exporter (Withdrawn from) to pay certain amount to the exporter or to any other party at sight or specified date. The amount of the draft represents the value of a commercial deal in addition to transportation expenses, or any other agreed up arrangements. These bills are prepared alongside with other documents upon shipment, and are divided to two types: Bill with Bank Guarantee or without Bank Guarantee according to the exporter’s request.