Inventory Financing

In its purest form, commercial borrowers use the value of their inventory (working assets, subject to advance rate) as collateral to secure financing to produce and market their products and market their products and services. The financing is then repaid by converting the inventory into cash, either directly or through the collection of an accounts receivable invoice.

Transaction Flow

• Storage and Warehouse Warrant – the goods owner (manufacturer / distributor, say borrower) stores the goods in one of the DMCC recommended warehouse and enters the details of the goods in the tradeflow portal and seek warehouse warrant.
• Pledge and Financing – the borrower negotiates financing with the bank.
• Settlement – when the borrower sells and generates finds, the loan is settled by the borrower along with the applicable interest. Once fully paid, the bank releases the pledge over the goods through tradeflow portal and closes the transaction.
• Liquidation – in case of non-payment, the bank will request DMCC to convert the pledge and issue a warehouse warrant favoring the bank.

Inquire Now

Get Engaged

Additional Services

Testimonials

Application Form Downloads

Trade Finance

Application – Letter of Credit

Application – LC Amendment

Application – Shipping Guarantee

Draft (Bill of Exchange) – LC and Collection

Application – Loan Trust Receipt (LTR)

Application – Letter of Guarantee

Authorization Letter on the Fixed Deposits, Deposits under Demand, Special Deposits and Alternative Deposits

Cash Management

Application – Remittance

Application – Standing Instruction

Global Transaction Banking

Online Services Registration Form (Corporate & Commercial)

eTrade guideline for LC / LG issuance

Achievements

Best Trade Finance Provider - 2021

Best Partner Bank Award - 2019

Best SME Card - 2014

Best SME Customer Service