It suits the local commercial activities, it mostly concerns the traders as it spares serenity and tranquility as it includes many advantages and characteristics; like:
- a. No extra commission or fees added to the cost value.
- b. The profit is known and it does not include any non-agreeable increase regarding the delay of payment.
- c. The customer is granted a suitable grace period to pay the first installment.
- d. Presenting the needed consultation and technical advice.
2-IJARAH (LEASING) CONTRACTS:
This type of contracts is characterized for lightening the operational costs paid by the owners to purchase needed equipments and heavy machinery for the large projects that represents a great burdening on the current capital. We lease the equipments and machinery for monthly installments, and at the end of the project, the customer either he returns the leased equipment and machinery to Kuwait Finance House, Or, he buys them from KFH. The range of equipment and machinery list expanded to include computers, cars, heavy machinery and the needs of big projects.
This product serves and suits the huge industrial and real estate constructional projects and others. Kuwait Finance House performs the role of the owner in administrating and executing the project till the end. Kuwait Finance House will finance, supervise, and undertakes the best technical specification. By this, the customer could execute his special projects then pays according to flexible schedule while sparing a typical grace period to pay the first installment.
This product is specialized for financing the local trade and to encourage the national products. Kuwait Finance House buys the high demand goods by the consumers from the original source (factory - supplier) and sells it to the co-operatives. We pay in cash and immediately the value of these purchases for the supplier, through this product, the supplier is not obliged to wait more than 90 days to collect the values. The supplier, himself transports and delivers the goods to the co-operatives on behalf of Kuwaiti Finance House.
The co-operative marketing product fully supports and helps the suppliers to get back their capital in a very fast way that paves the way freely to produce, develop and prevents the stumbles of capital resulted from the long term collection and the non-sufficiency of the working capital.
You are with a professional team work. , supported by a deep-rooted financial institution who spars flexible Islamic Financial programs
ISLAMIC FINANCE TOOL FOR TRADE SUPPORT
Our professional staff in documentary credit put their sole goal is to cover your trade need with right technical international standard.
- To safeguard your commercial needs and safety of your goods.
- Speedy commercial exchange at most convenient time that you have place to.
- Highly reach any place around the world through expanded correspondent bank net work with the recent up-to-date communication technology.
SERVICES PRESENTED BY L/C DEPARTMENT:
Kuwait Finance House presents services, which support Import and Export operation with high standard with accuracy and speed through expanded network for international banking correspondence with large experience in this field and its products.
Letter of Credit by Sight:
This type of LC creates security for merchants for importing goods or supplies it in the local market.
Letter of Credit on Acceptance basis:
It is a kind of LC, which gives importer to settle the draft to the beneficiary after receiving the goods or documents in Kuwait against acceptance present range from 60, 90 or as usage period agreed.
By this kind of L/C Kuwait Finance House is importing goods in his name and in his own risk in which the customer willing to import goods such when goods arrived Kuwait Finance House enable customer to buy it with an agreed profit to be settled in in installments suitable with customer cash flow.
Which helps in activities of the Foreign Export and support local products as we can advice this L/C to exporter and added their confirmation in case it is needed. As exporter will presents to us documents comply with L/C terms and he can get value of goods exported as per L/C terms.
Letter of Guarantees:
As we have issued various types of guarantees which is suitable for different types of projects either Tender, Performance or Advance payment and or maintenance contract and so on and also for Personal Guarantees like Telephone and others.
Bills for Collection:
As Kuwait Finance House act as a mediator to deliver documents to Companies, persons, Institutions which he will deliver as per the instructions received along with these documents.