Trade Finance — United Finance Company

You need to pay an overseas supplier but want to ensure goods are delivered before funds are released — or your supplier requires a bank-backed payment commitment.

Import Letter of Credit Documentary Collection

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Scenario 02

I'm exporting goods or services

You've received an order from an overseas buyer and need a guarantee of payment before you ship — ensuring you get paid once you've met the terms of the deal.

Export Letter of Credit Export Documentary Collection

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Scenario 03

I need a guarantee for a contract or bid

You're tendering for a government or private contract, mobilising on a project, or need to assure a client that you'll perform — without tying up cash.

Bid Bond Performance Guarantee Advance Payment Bond

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Scenario · Importing Goods

Import Finance Instruments

Import Letter of Credit (LC)

Most Common

UFC issues an irrevocable undertaking to your overseas supplier's bank — guaranteeing payment once the supplier presents compliant shipping and trade documents. Your supplier ships with confidence; you retain control until documents are verified.

Use when: Dealing with a new supplier, importing high-value goods, or when your supplier's country requires a bank-backed payment commitment.

Import Documentary Collection

Established Relationships

A simpler alternative to an LC — UFC acts as an intermediary, releasing shipping documents to you only when you pay (Documents against Payment) or accept a bill of exchange (Documents against Acceptance). Lower cost than an LC.

Use when: You have an established relationship with your supplier and both parties are comfortable with a lower level of bank guarantee than a full LC.

Scenario · Exporting Goods

Export Finance Instruments

Export Letter of Credit

Payment Certainty

When your buyer's bank issues an LC in your favour, UFC advises and confirms it — verifying its authenticity and guaranteeing payment once you present compliant documents. You ship knowing payment is secured.

Use when: You're exporting to a new buyer or market, shipping high-value goods, or your buyer's country carries elevated payment risk.

Export Documentary Collection

Lower Cost

UFC handles the document exchange on your behalf — releasing shipping documents to your buyer only when they pay or accept a bill of exchange. Simpler and less expensive than an LC but offers less protection.

Use when: You have a trusted buyer with a good payment track record and want a cost-effective way to manage document-based trade.

Scenario · Contract & Project Guarantees

Bank Guarantees & Bonds

UX Note

Bid Bond

Tendering

Provides the project owner assurance that you'll enter into the contract if your bid is accepted. Required by most government and large private tenders in Oman.

Use when: Submitting a bid for a government or private sector contract — typically 2–5% of contract value.

Performance Guarantee

Contract Execution

Assures the project owner that you'll fulfil the contract to specification. If you fail to perform, the guarantee compensates the client — protecting them and demonstrating your financial credibility.

Use when: You've been awarded a contract and the client requires a performance bond — typically 10% of contract value.

Advance Payment Bond

Mobilisation

Protects your client's advance payment — if you fail to mobilise or deliver, the bond ensures they can recover funds. Allows you to receive mobilisation advances without tying up your own cash.

Use when: You've received an advance payment from a client and they require security against non-performance.

What to prepare

Documents required

Core documents across all trade finance instruments. Your Relationship Manager will confirm the specific checklist based on the instrument and transaction.

Commercial Registration (CR) & Memorandum of Association

Valid CR and MoA reflecting current ownership and business activity. Required for all trade finance facilities.

Corporate

Audited Financial Statements

Last 2–3 years of audited accounts. Demonstrates financial standing and ability to back the facility or guarantee.

Financials

Trade or Contract Documents

Pro-forma invoice, purchase order, or signed contract — confirming the trade transaction or project for which the instrument is required.

Trade

Business Bank Statements

Last 6–12 months of business account statements. Supports credit assessment and demonstrates trading volumes.

Banking

Your Relationship Manager confirms the full checklist at first meeting. Additional documents required depending on instrument type, transaction value and counterparty country.

The process

Four steps to your trade facility.

Your Relationship Manager handles the complexity — from instrument selection to document verification and issuing.

Initial Consultation

Call or WhatsApp your RM. They'll identify the right instrument for your trade scenario and structure.

Credit Assessment

Submit your documents. UFC's credit team assesses your facility limit — typically completed within 48 hours.

Instrument Issuance

Once approved, UFC issues the LC, guarantee or collection instruction — routed directly to your counterparty's bank.

Document Handling

UFC verifies and processes trade documents on your behalf — releasing payment or goods per the agreed terms.

Common questions

Frequently asked questions

What is the difference between a Letter of Credit and a Bank Guarantee?

A Letter of Credit is used to facilitate trade payments — the bank commits to pay your supplier once specific documents are presented. A Bank Guarantee is a commitment to compensate a third party if you fail to fulfil an obligation, such as a contract or advance payment. LCs are about payment for goods; guarantees are about contract performance assurance.

Can UFC issue guarantees for government tenders in Oman?

Yes. UFC issues Bid Bonds, Performance Guarantees and Advance Payment Bonds for government and private sector tenders across Oman, including PDO, Ministry and municipality contracts. Your RM will confirm the required format and beneficiary wording based on the tender specifications.

How quickly can UFC issue a Letter of Credit?

Turnaround depends on the complexity of the transaction and whether you have an existing trade finance facility with UFC. For clients with an approved credit limit, LCs can typically be issued within 24–48 hours of receiving a complete application. New clients require a credit assessment first.

Do I need an existing relationship with UFC to access trade finance?

No. New clients are welcome. UFC's Relationship Manager will conduct a credit assessment and structure an appropriate trade finance facility limit based on your business financials and trade requirements. The initial consultation is obligation-free.

What other corporate finance products does UFC offer?

UFC's corporate suite includes Term Loans, Project Finance, Fleet Finance, Heavy Vehicle and Vessel Finance, Equipment Finance, and a full Working Capital suite including Bills Discounting, Debt Factoring, Cheque Discounting and Receivable Finance. Speak to your RM for a combined solution.

Trade with confidence.Across borders.

Trade with confidence.
Across borders.