A
Letter of Credit is a facility provided by the bank to its import
customers to enable them import the goods and services from abroad
without necessarily making payment in advance to the exporter.
Benefits
-
Payment
is guaranteed by both the issuing bank and the confirming bank as
long as compliant documents are presented
-
Mitigates
the buyer/country risks
-
Can
allow multiple/continuous shipments
-
Allows
access to other products e.g. pre-shipment finance and structured
finance
-
Quality
of products and price guaranteed by an independent pre-shipment
inspection company
Requirements
- Import
LC opening
- A
credit facility or cash margin
- Declaration
payment for imports form duly signed by the customer
- Pro
forma invoice from the seller or provider of services
- Copy
of Import Declaration Form (IDF)
- Certificate
of insurance or copy of marine insurance policy, if covered locally
- LC
application form duly signed
- Documentary
Collections/ Bills for collection
A
Letter of Credit is a facility provided by the bank to its import
customers to enable them import the goods and services from abroad
without necessarily making payment in advance to the exporter.
Benefits
-
Payment
is guaranteed by both the issuing bank and the confirming bank as
long as compliant documents are presented
-
Mitigates
the buyer/country risks
-
Can
allow multiple/continuous shipments
-
Allows
access to other products e.g. pre-shipment finance and structured
finance
-
Quality
of products and price guaranteed by an independent pre-shipment
inspection company
Requirements
- Import
LC opening
- A
credit facility or cash margin
- Declaration
payment for imports form duly signed by the customer
- Pro
forma invoice from the seller or provider of services
- Copy
of Import Declaration Form (IDF)
- Certificate
of insurance or copy of marine insurance policy, if covered locally
- LC
application form duly signed
- Documentary
Collections/ Bills for collection
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