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Trade Finance

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Globalization makes the world shrunk in term of international trade. Moreover, Trade Finance services play important roles to assist all traders to trade well from one country to another country. It can guarantee the safest form of international payment. Since operating this service (Trade Finance) since 2008 with our Oversea Correspondent Banks Network throughout the world and with professional sourced locally and global network, we, Phnom Penh Commercial Bank, are sure that we are able to consult and bring you with right decision of your business through these services. All services are detailed below:

Documentary Credit

  • Letter of Credit (Import)

    PPCBank Issues Letter of Credit on behalf of buyer to seller for accuracy payment when the seller has completed and performed all condition of contract in Letter of Credit.

  • Letter of Credit (Export)

    PPCBank advises, confirms, and negotiates on document credit issued by buyer's bank. For this PPCBank has a role to check for term and condition referred to sale contract and claim for payment.

Bank Guarantee

A. Local Bank Guarantee

  • Bid Guarantee : is issued to secure any claim by the party inviting the tender on the Tenderer in the event of withdrawal of the bid before its expiry date or if the bid is modified unilaterally or if the Tenderer, upon being awarded the contract, refuses to sign the contract or provide further guarantees on request.
  • Performance Guarantee : is issued to secure any claims by buyer on the seller arising from default in delivery or performance of the terms of the bilateral signed contract (e.g. Construction, Good Delivery, Assembly, ..).
  • Payment Guarantee : is issued to secure any claim by seller on the buyer for payment of the contract price by the agreed date.
  • Advance Payment Guarantee : is issued to secure any claims by the buyer on the seller for reimbursement of the buyer’s advance payment on the contract price before delivery of the goods (or advance payment of the full price) in the event that the seller has failed to meet his or her contractual delivery obligation in full.
  • Retention Money Guarantee : is issued to secure any claim by the buyer on the seller due to possible defects appearing after delivery.

B. Oversea Guarantee

  • Oversea Guarantee/ Standby Letter of Credit : (SBLC) is a guarantee of payment issued by a PPCBank on behalf of a client that is used as payment guarantee if the client fail to fulfill a contractual commitment with a third party.

C. Shipping Guarantee

  • Shipping Guarantee : is issued by PPCBank to guarantee the shipping company to release goods to customer without the presentation of the original bill of lading.

I.Documentary Credit

Suggested Rate Comments
1. Documentary Credit (Imports) Issuance of LC 0.1%p.m.min.2-mth.but not less than $50 +Cable charge $50
Amendment of LC: Increase in credit value 0.1% p.m. or part thereof, min. $25 +Cable charge $20
Extend validity 0.1% p.m. or part thereof, min. $25 +Cable charge $20
Change of terms not affecting validity or amount $25 flat +Cable charge $20
Cancellation of LC charges $30 flat +Cable charge $20
Import LC bill handling charge 0.1%, min. $30 +Cable charge $20
Acceptance Commission (Usance Bill) 0.1% p.m. or part thereof, min. $50 Indicative only
Reimbursing Fee $65 flat Normally for beneficiary's account
Discrepancy Fee $50 flat Normally for beneficiary's account
2. Documentary Credit (Exports) Pre-advise $10 flat
Advise Documentary Credit $30 flat $50 For Bank to Bank Adv
Advise Amendment $30 flat
Confirmation Subject to arrangement
Transfer LC : Full 100% transfer 0.1%, min. $50
Partial transfer 0.1%, min. $50
Export LC bill handling charge 0.125%, min. $50 +DHL courier charge
Negotiation Fee 0.125%
Issuing Assignment of Proceeds $50 flat Issuing for Local Only

II.Documentary Collection

Suggested Rate Comments
1. Import Collection Inward collection handling fee 0.125%, min. $50

+Cable charge $15

+Outward rem. charge

Release documents free of payment $50 flat +Cable charge $20
Presentation Free
Re-present bill $25 flat Including cable $20
Protest $50 flat +Out of pocket expense
AVAL commission Collateral Security Need 0.15% p.m. min. $30
2. Export Collection Outward collection 0.125% min., $50 +DHL courier charge
Release Documents Free of Payment $50 flat +DHL courier charge

III.Guarantee

Suggested Rate Comments
A.Local Guarantee
1.Guarantee against Cash Deposit Issuance Fee 0.1% p.m. min. $10 max. $500 p.a. -
Amendment for Increase Amt & Validity 0.1% p.m. min. $10 max. $400 p.a. -
Amendment Not Increase Amt & Validity $10 flat -
Duplicated Issuance $10 flat -
Cancellation of Guarantee $20 flat Free of Charge for Bid Guarantee
Payment of Claim 0.125% min. $50 and max.$100 -
2.Guarantee against Collateral Deposit Issuance Fee 0.14% p.m. min. $50 -
Amendment for Increase Amt & Validity 0.14% p.m. min. $50 -
Amendment Not Increase Amt & Validity $10 flat -
Duplicated Issuance $10 flat -
Cancellation of Guarantee $20 flat Free of Charge for Bid Guarantee
Payment of Claim 0.125% min. $100 and max.$150 -
B.Overseas Guarantee/Standby LC
1.Issuance Overseas Guarantee /Standby LC Issuance Fee 0.15% p.m. min. $50 + Cable Charge $50
Amendment for Increase Amt & Validity 0.15% p.m. min. $50 + Cable Charge $20
Amendment Not Increase Amt & Validity $25 flat + Cable Charge $20
Cancellation of Guarantee/SBLC $30 flat + Cable Charge $20
Payment of Claim 0.125% min. $50 and max.$200 -
Remittance Charge 0.17% min. $10 + Cable Charge $15
Tracer $20 flat
2.Advice/Re-Issue Against Counter Guarantee Advice of Guarantee/SBLC (Bank to Bank) $50 flat -
Advice of Guarantee/SBLC (Bank to Customer) $30 flat -

Guarantee Issuance against Counter

Guarantee/SBLC of Counterparty Bank

0.15% p.m. min. $50 -
3.Shipping Guarantee SGLC (Relating to bill under our L/C) $30 flat -
SG (Relating to inward collection bill handled by us) 0.3% for 2-month Subsequently 0.3% p.m
SG (Documents not handled by us 0.3% p.m Not encouraged, risky