British trade finance firm strikes deal with Bangladeshi bank

By Ryan Weeks on Tuesday 17 October 2017

Alternative Lending

First Security Islami Bank Limited will offer PrimaDollar’s solutions to customers.

First Security Islami Bank Limited will offer PrimaDollar’s solutions to customers.

A British trade finance firm named PrimaDollar has agreed to a sharia-compliant partnership with First Security Islami Bank Limited (FSIBL). The bank will make PrimaDollar’s trade finance services available to its export customers, allowing them to access finance against their open account receivables.

“FSIBL is taking the lead in the local market and our customers will benefit directly from the expanded range of trade finance services that we will be able to offer,” said Mr. Syed Waseque Md. Ali, Managing Director of FSIBL.

PrimaDollar says that local banks have historically found it difficult to offer discounting services without the added security of letters of credit. FSIBL will now be able to do just that, without breaching the principles of Sharia law.

“First Security Islami Bank will be a strong partner for us going forward as we continue to build our support for Bangaldeshi exporters,” said Tim Nicolle, CEO of PrimaDollar. “Exporters need access to credit facilities so that they can sell to international buyers without letter of credit and offer deferred payments. FSIBL will be able to offer this facility in it is branches, and not just for the largest buyers.”

Using partnerships as a means of gaining entry into the hallowed branch is not without precedent within the alternative finance space globally. Zopa, an alternative finance firm which funds consumer loans via an online marketplace, recently struck a deal with Saffron Building Society which will see its loans offered in-branch. 

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