Actrade's credit approval process requires completion of a single page Buyer Credit Profile form and submission of the most recent year-end financial statement. Credit decisions are generally made within 72 hours of submitting the completed documents. E-TADs are purchased without recourse. Bank loans and bank lines of credit do not eliminate seller recourse. Actrade does not charge an annual fee to use the E-TAD Program.
Banks typically charge an annual fee to keep a line of credit open.
Actrade's E-TAD Program does not restrict other financing facilities. Bank financing normally includes covenants that restrict other borrowing capabilities. Letters of credit are more formally called documentary letters of credit because the banks handling the transaction deal in documents as opposed to goods . In the case of a letter of credit the supplier must meet very specific terms and conditions, which generally requires a lien on their assets. If the specific terms and conditions are not met, there is no guarantee of payment.