Trade finance solution

Outright document purchase: unlock cash, accelerate growth

For businesses selling on deferred terms. Converts revenue to cash faster, improves cash flow, and helps keep operations stable.

Early cash after delivery

Lower 30-90 day cash lock

No collateral required

Suitability

Buyer side

Businesses needing longer payment terms (30-60 days).
Businesses optimizing cash for operations and investments.
Trading/distribution businesses that buy for resale.
Businesses strengthening supplier trust via LC.
Businesses scaling procurement without full upfront cash.

Quick highlight

Ideal for buyers optimizing cash flow and scale via extended payment terms, stronger supplier credibility, and flexible working-capital management.

Seller side

Large-order businesses with working-capital constraints.
Businesses selling on 30-90 day deferred terms.
Growth-oriented businesses blocked by slow cash conversion.
Businesses needing faster capital turnover.
Businesses that cannot or do not want traditional bank loans.
Businesses trading with reputable counterparties / LC-backed deals.

Quick highlight

Ideal for businesses with high working-capital needs to fund orders, shorten collection cycles, accelerate growth, and access financing beyond traditional bank loans.

Benefits for all parties

Company A (Seller)

Receives cash soon after delivery instead of waiting full tenor.
Improves working-capital efficiency and turnover speed.
Can accept more orders and scale faster.
Reduces concern over delayed or failed buyer payment.
Can maintain cash flow without collateral-heavy borrowing.

Company B (Buyer)

Gets 30-60 day payment window and lower immediate cash pressure.
Strengthens supplier trust through LC-backed payment commitment.
Can sell and collect cash before repaying the bank at maturity.
Can increase purchase volume without full upfront funding.

Bank

Generates income from discount interest and LC service fees.
Expands relationships with both buyer and seller.
Controls risk based on valid LC and compliant documents.
Acts as funding intermediary improving supply-chain efficiency.

Transaction context

Day 0: Company A delivers goods to Company B, valued at VND 20 billion. Revenue is recorded but cash is not received yet.

Day 0 to Day 60: VND 20 billion stays in receivables, limiting operating cash and new order execution.

Day 60: Company A receives payment under LC, meaning revenue turns into cash only after full maturity.

Real impacts

Cash-flow pressure: less funding for inventory, suppliers, and operating costs.
Missed opportunities: new orders or better buying opportunities cannot be executed in time.
Slower growth: if each deal takes 60 days to collect, annual turnover may be only around 6 cycles; earlier cash can increase this to 10-12 cycles.
Bank-loan dependence: collateral, approval delays, and interest pressure.

You are selling well, but your cash is effectively held by customers for 60 days. Time equals opportunity cost and growth speed.

Implementation process

For cases where buyer and seller only have commercial contract terms and have not yet put LC commitments in place.

Step 1

Buyer asks Bank A to issue LC. Notes: LC issuance requires approved credit limit; LC terms must allow VIB to purchase documents outright; Bank A charges LC issuance fees per agreement.

Step 2

Seller submits an outright purchase request with invoice and transport documents compliant with LC terms.

Step 3

Bank A reviews document set, sends acceptance notice to seller, and charges agreed fees. Fee level depends on transaction value, LC tenor, and negotiated fee ratio.

Step 4

At LC maturity, buyer repays the bank under agreed conditions.

Partners

Banks in Vietnam

Area for partner bank logos and names (to be updated).