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Merchant Credit and Guarantee Corporation Limited (MCGCL) is a Non-Bank Financial Company that has been in

business since 2000 handling various financial and broking services. Today the company with its principles and its

team of business professionals with varied experience in Banking and Financial Services have embarked on a

boutique financial consulting activity that specializes in the provision of Capital for Businesses, Trade and Financial

facilitation which include but is not limited to import/export transactions that mostly involve supporting Credit

facilities, financial assurances, issuing or broking in financial instruments to back up payment commitments,

obligations and Purchase of Goods, most commonly of International Nature by Banks and Financial Institutions

globally. MCGCL operates in a consultative capacity to bring the client within easy access of banking facilities and all

the necessary paperwork and red tape that goes along with the entire process.

With the rapidly developing trade base in the import and export industry, project finance and trade import and export,

finance is playing a huge role in how countries are doing business with each other. The roles of financial institutions

are to provide security when business is being done across country borders. Whether you need a tender guarantee

to bid on a construction project or a confirmed letter of credit to buy goods from China and import them into Australia,

MCGCL has the ability to arrange for the facilitation of such issuance for all these different types of commercial

letters of credit and financial and or performance guarantees.

MCGCL has experts on the ground in various parts of the world that represent various areas of business, heavy

infrastructure and service industry and are able to guide clients in the right direction to attain their specific project

goals. Today with its offices in NZ, USA, Thailand and India and correspondents in Europe and the UK, MCGCL has

unique link ups with Banking and finance institutions all over the world with superior connections for the issuances of

just about any kind of commercially acceptable swift transmitted trade credits as the case may be.

Through honest and reliable business practices to build its good reputation, we have obtained worldwide

acceptability. We can help businesses create new opportunities and revenue streams all around the world.

FINANCETRADE

Letter OfCredit

Documentary Collections

Guarantees Proof of Funds

SBLC

WHO WE ARE?

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Letter of credit accomplish their purpose by substituting the credit of the bank/financial institution for that of the

customer for the purpose of facilitating trade. In the event the buyer/importer is unable to make payment on the

purchase, the bank will be required to cover the full or remaining amount on the purchase. Due to the nature of

international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing the

parties to the contract personally, the use of letters of credit has become a very important aspect of international

trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce

Uniforms Customs and Practice for Documentary Credits.

Letters of Credit are as old as banking itself. They are based upon the fact that the creditworthiness of an unknown

Buyer is thus replaced by the creditworthiness of a known Bank or financial company. MCGCL often has to stand in

the shoes of its customers and give some form of undertaking that payment will be made provided certain conditions

are complied with. This mechanism is called as Letter of Credit or Documentary Credit. Although there are various

types of Letters of Credit, people are most likely to be familiar with the terms Import or Export Letter of Credit.

When a Buyer applies for an Import Letter of Credit it specifies the Exporter, the amount, the Currency, the maturity

date, the nature of goods, as well as any other payment terms. The Exporter in his country is then advised that a

Letter of Credit has been opened in his favour, therefore he is the beneficiary of an Export Letter of Credit. Therein,

the Exporter ships the goods to the Importer and presents all the required documents to the bank. The bank checks

the documents for complying with the Letter of Credit and makes payments to the Exporter. At the end, the bank

claims settlement from the Importer.

Letters of Credit (LoC)

Importer Exporter

1 - Sale Contract

5 - Shipment

3 - Issuing Letter of Credit

2 -

LC

Applica

tion

4 -

Advi

sing L

ett

er

of

Cre

dit

6 -

Pre

senta

tion

of

Docu

ments

Issuing Bank Advising Bank7 - Presentation of documents to issuing bank

8 - document control, payment release at maturity

8 -

Docu

ment

Rele

ase

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What Is A Bank Guarantee?A Bank Guarantee involves a financial institution providing a guarantee that a debt will not go unpaid. This kind of

transaction gives the person or institution a safety net should the debtor be unable to make good on his borrowed

money. If this situation does occur, the bank that provided the Bank Guarantee is responsible for the balance owed.

Bank Guarantees can provide the necessary references to obtain a loan for goods or services. By procuring this type

of instrument, a business will be able to purchase the needed capital to start or maintain their services to others.

Since a bank is “backing” the customer, the institution providing the loan has no reason to find the customer

unworthy of a loan. Whether the customer follows through or not, the loan will still be paid back without any hassle or

interference of collections agencies.

MCGCL is often asked to assist in obtaining in the provision of Guarantees or Bonds on behalf of its customers, who

may be importers or exporters, traders, middlemen or possibly contractors who have to give some form of

undertaking to their counter-parties. The Guarantee is a written undertaking from a bank that if a customer does not

honour an obligation to perform a particular function or service, the bank will pay over a sum of money on behalf of

that customer to a named party.

Do You Need A Bank Guarantee?The answer to this question is found in the answer to a few other questions, such as: Would you profit from

transactions that you fear might not work out were you to become involved? Could you provide your services more

freely and more widely if the risk of the other party not following through were lower? Simply put, a Bank Guarantee

takes the fear out of stepping out on a ledge. If you know there is a safety net, you can feel free to not only walk, but do

cartwheels. Think of how vast your connections and services could be if you just had a little bit of a safety net. That’s

what a bank guarantee can do for your business.

Bank Guarantees

A performance guarantee is a promise made that either a service lives up to certain expectations, or that a product

will continue to perform well over a stated time period. In the business world, there are many such guarantees, each

created in individual ways to define the company's commitment and extent of future responsibility. Sometimes, third

parties guarantee performance of something too, especially when employing subcontractors.

For consumers, the guarantee might sound something like the following: “We guarantee if you use our exterminator

service, you won’t have any more cockroaches or we’ll come back to fix the problem for free.” This is not just an

assurance of quality in the initial service, but an assurance of quality in the near future. To save money, the

exterminators might also specify a time period during which they'll provide the service, or they might be

guaranteeing free service forever, with each new roach encroachment. The goal, though, is to make the customer

choose the services of a business because that business promises to stand by its work. Other guarantees are

possible. For example, there are many private schools that guarantee that students can finish an undergraduate

degree in four years, and if they don’t, they get a fifth year free. This offer can look pretty good when state schools are

cutting budgets and classes dramatically, and might make a student lean toward private education, even though it’s

more expensive.

Occasionally, there are agreements where a third party subcontractor is used, but the subcontractor isn’t monetarily

liable if performance isn’t up to par. Instead, some other business may guarantee the performance and have to pay

fees or fines if it isn’t satisfactory. Governments occasionally license businesses to do certain types of work, like

improving energy efficiency in buildings. The company that invests in such work would not go back to the

subcontractor if the work hadn’t improved energy efficiency. Instead, it would go straight to the government for

recompense.

Performance Guarantees

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DEFINITION of 'Standby Letter of Credit - SBLCA guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the

client fail to fulfil a contractual commitment with a third party. Standby letters of credit are created as a sign of good

faith in business transactions, and are proof of a buyer's credit quality and repayment abilities. The bank issuing the

SLOC will perform brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then

send notification to the bank of the party requesting the letter of credit (typically a seller or creditor).Also known as a "non-performing letter of credit".

A standby letter of credit will typically be in force for about one year, allowing for enough time for payment to be made

through standard contractual guidelines. Standby letters of credit are often used in international trade transactions,

such as the purchase of goods from another country. The seller will ask for a standby letter of credit, which can be

cashed on demand if the buyer fails to make payment by the date specified in the contract. The cost to obtain a

standby letter of credit is typically 4-15% of the face amount annually, but the letter can be canceled as soon as the

terms of the contract have been met by the purchaser or borrower.

A Standby Letter of Credit or Guarantee is a written undertaking given by an Institution to the person with whom you

are doing business (beneficiary) to pay a specified amount of money in the event that you or a third party do not meet

specific financial or performance obligations. Upon MCGCL's payment to the beneficiary, you reimburse MCGCL for

such payment.

MCGCL has expertise in structuring Standby Letters of Credit or Guarantees to meet your business needs while

helping to protect your interests to the extent possible in the circumstances. MCGCL has developed numerous

Standby Letter of Credit or Guarantee proformas to meet a variety of scenarios; we can customize any of our formats

to suit your needs, subject to certain requirements. Our trade finance experts provide you with structuring, mitigation

and financing expertise and up-to-date country and trade risk guidance to support and expedite your trade

transactions

Standby Letters of Credit - SBLC

Buyer Seller

1 - Sale Contract

5 - Goods Delivery

3 - Issuing SBLC

Issuing Bank Advising & Confirming Bank

2 -SBLCOpening Request

4 - SBLCAdvising &Confirming

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International trade procedure in which a bank in the importer's country acts on behalf of an exporter for collecting and remitting

payment for a shipment. The exporter presents the shipping and collection documents to his or her bank (in own country) which

sends them to its correspondent bank in the importer's country. The foreign bank (called the presenting bank) hands over

shipping and title documents (required for taking delivery of the shipment) to the importer in exchange for cash payment (in case

of 'documents against payment' instructions) or a firm commitment to pay on a fixed date (in case of 'documents against

acceptance' instructions). The banks involved in the transaction act only in a fiduciary capacity to collect the payment but (unlike

in documentary credit) make no guaranties. They are liable only for correctly carrying out the exporter's collection instructions

and may, if so instructed, sue the non-paying or non-accepting importer on the exporter's behalf

MCGCL also facilitates international trade transactions by providing a documentary collection facility. Under this arrangement,

the supplier knows that the shipping documents will be released to the buyer against payment (DP) or acceptance (DA) of draft,

based on their payment agreement.Documentary collections are of two types:- - Document against payment (DP) - Sight Documents - Document against acceptance (DA) - Term Documents

Under this service shipping documents are sent to us by the Seller’s bank to be delivered to the Buyer as per their instructions.

The Seller is assured that documents are delivered to the Buyer against payment (DP documents)/ or acceptance to pay on due

date (DA document) as per their terms of payment.

The Buyer is able to get the goods without making any payment until the goods are shipped by the Seller and the shipping

documents are received at our end. The Buyer gets delivery of the documents as per the agreed payment terms. DA terms enable

the Buyer to get credit from the supplier.

Documentary Collections

ImporterExporter

Collecting BankRemitting Bank

2

1

3

4

5

6

7

8

9

Sale Contract

Dra

ft, docu

ments

and c

ollect

ion o

rder

Shipment of Goods

Draft, documentsand collection order

Trade

acc

epta

nce

Docu

ments

Paym

ent

Payment

Paym

ent

Cre

dit

Documents against acceptance

ImporterExporter

Collecting BankRemitting Bank

2

1

3

4

5

6

7

8

Sale Contract

Dra

ft, docu

ments

and c

ollect

ion o

rder

Shipment of Goods

Draft, documentsand collection order

Docu

ments

Paym

ent

Payment

Paym

ent

Cre

dit

Documents against payment

Export Documentary CollectionsIn today's international credit markets, exporters often need to use their financial resources or bank relationships to affect a trade

sale. Buyers in Latin America, Africa, Eastern Europe, Asia and the Middle East may be unable to obtain international credit on

their own.

For commercial trade transactions, our Export Documentary Collections offer exporters an alternative payment method to letters

of credit. When you ship goods to an importer, MCGCL retains custody of the title documents, until payment is received or

expectance is obtained from the importer.

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DEFINITION of 'Proof Of Funds - POF’A document that demonstrates that a person has the ability and funds available to use for a business transaction. It usually comes

in the form of a bank, security or custody statement. The purpose of the document is to ensure that the funds required for the

transaction are obtainable and legitimate.

MCGCL can provide many products and services to assist you in your financial needs. We are a trusted Proof of Funds facilitator

that has been relied on for several decades by many thriving businesses in the financial industry.

Let us use our experience to help you! Our services incorporate a variety of needs, and include the following: - Cash Management - including Collection Services, Disbursement Services and International Payments. - Trade Financing - SBLC's, LC's and Bank Guarantees - Financial Guarantees - A simple application starts the process - SWIFT Services - Safely and securely completing your transactions

All of our products are securely cash backed and can be used for any of your proof of funds needs. Should your transactions

require cash collateral, credit enhancement, balance sheet enhancement, or more, MCGCL can be your solution.

Proof of Funds Documents

What is a 'Time Draft’?A time draft is a form of payment that is guaranteed by an issuing bank, but is not payable in full until a specified amount of time

after it is received and accepted. Time drafts are a type of short-term credit used for financing transactions of goods in

international trade. They allow the buyer a delay in payment after accepting a shipment of exported goods. A time draft contrasts

with a sight draft, which requires immediate payment.

The purpose of time drafts is to facilitate international trade. When an exporter receives an order from an unknown importer (or

with which it has little credit history) in another country, the importer can apply for a banker's acceptance, which substitutes the

bank's credit for the importer's credit. The time draft is post-dated so that payment does not occur until a specified date in order to

allow the importer time to receive its ordered goods and confirm satisfaction. After the issuance of the banker's acceptance, the

exporter now possesses a promise of payment from the financial institution. It can hold this asset until maturity and be paid in full,

or sell it before maturity at a discount to obtain earlier access to the funds. The time between acceptance and maturity is called

"tenor" or "usance." As such, time drafts may be referred to as "usance drafts."

Time Draft

From wherever they originate, transaction proceeds are remitted to your account within 24 hours of receipt, giving you access to

your funds at the earliest possible moment. Export Documentary Collections also let you: - Centralize the management of export receivables - Track outstanding collections - Know when payments are made - Improve the reconcilement and administration of your export processing

Unlike with letters of credit, the bank does not cover credit and country risk. If you’re comfortable assuming those risks, Export

Documentary Collection maybe a cost-effective option.

You can generate Export Documentary Collections electronically, using MCGCL to transmit transaction details directly to us from

your office. You can also denominate these transactions in a variety of currencies.

How Export Documentary Collections Work?An Export Documentary Collection is a method of payment by which an exporter can collect payment from an importer through an

intermediary bank, which facilitates the flow of title documents and payment.

The exporter’s bank solicits a payment, on the exporter’s behalf from an importer by sending title documents and a cover letter to

the importer’s bank. The importer’s bank advises the importer of the bill. When the importer pays the bill, the importer’s bank pays

the exporter’s bank.

When the exporter’s bank receives payment, it promptly credits those funds to the exporter.

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- Credit risk eliminated - Reduces exchange rate and political risk - No Need for Credit Check - Requirements to pay are well-known - Pre-shipment risk avoided - Facilitates financing - Immediate payment

Advantages To The Seller

To initiate the letter of Credit Relationship, we must be in the receipt of the following: - Master Facility Agreement (signed, stamped, and notarized with Applicant’s company seal) - Application for Trade Finance Facility (signed, stamped, and notarized with Applicant’s company seal) - Certificate of Incorporation - Passport Copy of the Majority Shareholder(s) of the Applicant’s company (If the applicant is located within United States: Driver License or State Photo ID) - Copy of recent utilities bill with Applicant company address

To hear more about Trade Finance and our complete services, contact us at sales@merchantcreditcorp.co

Or visit us on our website atwww.merchantcreditcorp.co

61 SOI 41, Pattanakarn Road, Sualuang, Bangkok, ThailandMERCHANT TRADE AND GUARANTEE CORPORATION LIMITED

123 Manukau Road, UNIT No. 3, EPSOM, Auckland 1023, New Zealand

MERCHANT CREDIT AND GUARANTEE CORPORATION LIMITED

Gopal Mansion, 2nd Floor, Turner Road, Bandra Talao, Bandra West, Mumbai - 400050, India

A-57, MERCHANT CREDIT AND GUARANTEE CORPORATION LIMITED

- Expert Examination of Documents - Sources of Supply expand - Financing - No cash tied up - Payment only after compliance

Advantages To The Buyer

Our BankersCommerzbank Societe GeneraleDeutsche BankBank WintersCredit AgricoleUnibanqueAxios Credit BankBank Leumi USAIsrael Discount Bank of NYKCitibank USAWells Fargo Bank, NYKBank of BarodaHabib AG ZurichDBS BankOCBC Bank

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