A US-based company was awarded a huge contract for the supply of sugar to their Ex-buyers in Africa. The company negotiated with a sugar supplier in Brazil and eventually settled on the price and other terms of contract. But unfortunately, the buyer did not have sufficient capital in their bank account to prove their financial strength in terms of Bank Comfort Letter (MT-799) to the supplier to be able to get the contract. At the same time, they did not want to give up such grand prospect, as a lucrative-deal and incredible profit.
The global search for the banks that could provide the desired Bank Comfort Letter or Financial Capability Letter was a cumbersome and painstaking affair for the sugar buyer. Most of the Banks, if not all, require the company to deposit 100% cash margin or fixed deposit against their requested BCL.
Luckily, they got a chance to visit the website of Bronze Wing Trading (BWT), Dubai, which is expert in providing such trade finance facility without obtaining any financial collateral to provide BCL (MT-799).
The sugar buyer fulfilled BWT’s straightforward course of action and submitted the copies of sales & purchase agreement along with relevant legal documents. On completion of necessary procedural formalities, Bronze Wing Trading processed the case, established the
requisite Bank Comfort Letter and requested their bank to issue an authenticated swift MT-799 to the beneficiary’s bank in order to notify the sugar supplier that the buyer company is financially capable to carry out the sugar deal.
Upon receipt of the MT-799 in their bank account, the supplier made available the authenticated Proof of Product (POP) of the sugar quantity available as per their sales & purchase agreement. In return, the buyer provided the Letter of Credit, which they’ve also obtained from BWT, to pick up the sugar quantity and successfully supply the sugar to their Ex-buyers in Africa.
The US-based sugar importer amicably concluded his sugar transaction and was contented by Bronze Wing Trading’s efficient and competent service.