Things you should know

  • Eligibility

    Applicable for businesses of all sizes (SMEs & large corporates)

  • Documentation

    Requires trade contracts, invoices, and shipment documents

  • Transaction modes

    Supports LC, BG, Bill Discounting, Supply Chain Finance

  • Digital access

    Letter of Credit, Bank Guarantee requests and tracking available online

  • Benefits

    Enhances credibility, reduces risk, improves cash flow

About

Letters of Credit (LC)

A Letter of Credit is a financial instrument in which the bank, on behalf of the buyer, assures payment to the seller upon fulfilment of agreed conditions and presentation of compliant documents.

Process:

  • Buyer and seller agree on LC payment terms in the contract.
  • Buyer requests ICICI Bank to issue the LC in favour of seller.
  • ICICI Bank issues and advises the LC to the seller’s Bank as applicable.
  • Seller ships the goods and submits the required documents to his banker.
  • Bank dispatches the document to ICICI bank, upon successful examination of credit compliant documents, ICICI Bank makes the payment basis usance or sight.
  • Buyer and seller may or may not both be ICICI Bank customers.

Benefits:

  • Reduces counterparty risk
  • Assures payment to the seller
  • Enhances credibility in business transactions

Bank Guarantee (BG)

A Bank Guarantee is an assurance provided by a Bank that it will fulfil a financial or performance obligation if the customer fails to do so.

Types:

  • Performance Guarantee
  • Financial Guarantee
  • Bid Bond Guarantee
  • Advance Payment Guarantee
  • Deferred Payment Guarantee

Key Features:

  • Express BGs issued within hours
  • E-stamped and e-signed for authenticity
  • Secure verification via SFMS messaging

Benefits:

  • Builds trust in large value contracts
  • Enables smoother project execution
  • Fully digital application

Bill discounting and bills for collection

Bill Discounting: Financing provided against trade bills drawn on buyers, enabling sellers to convert credit sales into immediate cash.

Bills for Collection: ICICI Bank facilitates secure payment collection for trade bills both LC-backed and clean collection bills on behalf of the seller.

Benefits:

  • Improves working capital position
  • Ensures timely realisation of receivables

Supply Chain Finance
  • Dealer or distributor financing: Enables distributors or dealers in a corporate supply chain to avail instant working capital for inventory purchases.
  • Factoring or reverse factoring: Enables suppliers to access funds against approved invoices, reducing receivable cycles.

Benefits:

  • Strengthens supply chain relationships
  • Faster fund availability with minimal paperwork
(Reference: ICICI Bank – Supply Chain Finance page)

Structured Trade Finance
  • Customised solutions for complex transactions, including:
  • Freight Financing
  • Specialised credit structures for project-based trade deals
(Reference: ICICI Bank – Structured Trade Solutions page)

Digital Trade Platforms

Features:

  • Submit LC and BG requests online
  • Track transaction status in real time

Cash Management Services
  • Collection and payment management services for businesses to facilitate the smooth settlement of domestic trade flows.
  • Includes NEFT, RTGS, IMPS, UPI-enabled transactions, cheque collections, and automated reconciliation.

FAQs

What is Domestic Trade Solutions by ICICI Bank?

Domestic Trade Solutions are financial products and digital platforms designed to support businesses in buying and selling goods or services within India. They include LC, BG, Bill Discounting and Supply Chain Finance.

Who is eligible to apply for these trade solutions?

Businesses of all sizes, small, medium and large, can avail themselves of these solutions to manage domestic trade efficiently and improve cash flow and credibility.

What documents are required to apply?

You need trade contracts, invoices, shipment details and buyer or seller information to process LC, BG, bill discounting, or supply chain finance requests.

How can I apply for these trade products?

Applications can be submitted online through ICICI Bank’s digital trade platform or at the branch. You can track the status in real time.

What are the types of domestic trade solutions offered?

ICICI Bank provides Letters of Credit (LC), Bank Guarantees (BG), Bill Discounting, Supply Chain Finance and Structured Trade Finance for various domestic trade needs.

What are the key benefits of these solutions?

They reduce counterparty risk, ensure timely payments, strengthen supply chain relationships and offer faster fund availability with minimal paperwork.

Disclaimer

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