Open trade finance

One minute guide

What is Open Trade Finance?

Open trade finance is a simple, low cost and collateral-free way to finance international trade. 

Trade finance is needed when an exporter wants to be paid at shipment but a buyer wants to pay later.

Open trade finance is a simple system provided by PrimaDollar and others to meet this need:

  • The exporter is paid in cash at shipment

  • The buyer pays later, and we take the buyer credit risk


PrimaDollar offers a simple pricing system based upon a single flat fee. There are no other fees provided the buyer pays on time.

What about adding a letter of credit?

Sometimes an exporter wants a letter of credit in order to obtain pre-shipment finance, or because local exchange controls require it. PrimaDollar can arrange for a letter of credit to be added to any open trade finance transaction. Our letters of credit are issued by Barclays Bank plc, one of the largest banks in the world.

You pay at shipment, how does that work?

Before shipping the goods, please check with us that your buyer limit is in place and there is sufficient space on the limit for your trade. With the limit in good order, you can ship the goods and then show us your shipping documents. When we see the shipping documents, we will pay you in cash usually 90% of the invoice value. The balance is paid later when we are paid by the buyer.

There are different ways to manage the shipping documents.

  • You can send the shipping documents to us directly. This is the easiest.

  • If you prefer to lodge your documents with your local bank, we may still be able to pay. We need a confirmation from your local bank that they are holding your documents and will release them against our payment.

  • Sometimes your buyer will authorise us to pay against a copy of the shipping documents - in which case we usually do not insist on seeing the originals.

You pay 90% at shipment - why not 100%?

The reason why we retain a small balance is to ensure that you, the exporter, have an incentive to help us collect the sums due from the buyer and provide a reserve in case there are problems. We will pay you the balance less our charges when the buyer pays us.

What does it cost?

You can see our charges for yourself here:

Find out more about open trade finance

PrimaDollar aims to be the lowest cost provider of open trade finance. We have a simple system that is powered by good systems and a strong focus on customer service.

  • Read more about export finance:here

  • Information about PrimaDollar: here

  • How our pricing works: here

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