Warehouse finance offered by KBC Euro Credit Limited provides trading companies with the flexibility to extend credit periods without disclosing such arrangements to suppliers, enabling them to secure favorable payment terms and consolidate merchandise from various suppliers.

Our financing solutions can be tailored to accommodate payments made through documentary credits, documentary collections, or confirmed purchase orders. Typically, transactions are settled on a ‘sight’ basis, with goods consigned to KBC Euro Credit Limited, allowing trading companies to negotiate better terms with suppliers and gain additional time to sell the goods and realize proceeds from receivables.

Goods consigned to KBC Euro Credit Limited can be warehoused for an agreed period, with the trading company having the option to draw on them partially or fully. These draws can be made against cash payments or substitute documentation required under inward receivables (e.g., letters of credit or documentary collections). In cases where immediate possession of goods is necessary to fulfill existing orders, goods may be released to the importer ‘in trust’ for an agreed period, with payment due at the end of this period. The agreed-upon timeframe aligns with the trading company’s usual terms of trade and commences from the date of the bank’s payment to settle the underlying transaction.

KBC Euro Credit Limited offers these facilities in all major currencies, along with currency hedging techniques and variable interest rates linked to currency base rates. Financing typically covers 60 to 80% of the goods’ cost, preferably via irrevocable letters of credit, although small advance payments may be considered on a case-by-case basis. Certain criteria, including the standing of counterparties, assignment of inward receivables, appropriate insurance coverage, nature of merchandise, potential for Collateral Management Structures (CMS) / Stock Monitoring Agreements, and feasible time frames and delivery dates, must be met.