Export–Import Finance · Question

How do I choose an authorised dealer bank for my trade transactions?

Short answer

Pick the bank by how well it will handle your actual trade flow, not just by the quoted charges. Compare its trade desk capability, speed and accuracy in processing documents, reach to your buyers' and suppliers' banks, range of facilities, and the quality of relationship support. Price matters, but a small saving can be wiped out by delayed documents or a failed payment.

In more detail

An authorised dealer bank is a bank permitted to deal in foreign exchange. Most commercial banks are, but they differ greatly in how well they serve a particular business.

Start with what you need. An exporter to a few regular markets has different needs from an importer of machinery or a trader dealing in several currencies. Write down your transaction types, the usual currencies, the countries involved and your expected volumes.

Then compare along these lines:

Trade processing. Does the bank have a dedicated desk or specialists for letters of credit, collections and remittances? How quickly does it examine documents and point out discrepancies?
Reach. Does it have working relationships with banks in your buyers' or suppliers' countries, so that confirmations and collections move smoothly?
Facilities. Can it provide pre-shipment and post-shipment finance, bill handling, guarantees and forward cover under one roof, or must you split services?
Foreign exchange dealing. How does it quote on forward contracts and conversions, and how transparent are its margins? Compare by asking for quotes at the same time, and by understanding the difference between rates.
People. A relationship manager who understands trade, answers questions and escalates problems quickly is worth a lot when a shipment is waiting.

Do not judge only on one quote

Lower processing fees can be offset by wider currency margins, slower handling or rejection of workable documents. Ask for a full schedule of charges before deciding.

Many businesses keep one primary bank for trade and a second for backup or specific products. Where you already have a working capital limit, check how a new trade bank would fit with it, since multiple banking arrangements usually need coordination.

Key points

Choose on fit with your trade flow: currencies, countries, document volumes and facility types.
Compare trade desk capability, document speed, reach and foreign exchange dealing, not just fees.
Ask for a complete schedule of charges and compare quotes taken at the same time.
Check how a new trade bank fits with existing borrowing arrangements.

Who this applies to

Businesses starting to export or import and choosing a bank for foreign exchange work.
Exporters unhappy with slow document handling at their present bank.
Companies considering splitting trade business across more than one bank.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.