Letters Of Credit (LC) / Documentary Credits
LCs are written undertaking issued by NIB Ltd, on behalf of a buyer, to the seller, to pay for goods or services. The seller must present documents which comply with the terms and conditions of the LC to the bank for payments.
Features
LC can either be Import or Export LC
LC guarantees payment from buyer to seller
It is mostly irrevocable
It is an insurance contract for both parties involved to eliminate credit risk
Provision of Legal Protection under Uniform Customs and Practice (UCP) 600
It assures expert examination of documents
Benefits
Offer degree of safety when importer or exporter are in untested business relationship
Quick and more secure means of payment for seller
Customers have access to foreign currency at very competitive rates
The customer/buyer lowers the risk of paying for substandard goods
Facilitating Financing
The buyer also relies on the LC to place discipline on the supplier for timely shipment
How to Apply / Requirements
Customer's request/Complete our LC forms
Attach your Proforma Invoice and Import Declaration Form (IDF)
Customs Clearing Documents (Bill of Entry) to be submitted after goods cleared
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