A UK trading company discovered a potential supplier in Russia and signed a contract with them for the supply of steam coal against a colossal deal. The Russian supplier asked for 30% advance payment, at the outset; but their available capital was insufficient to meet the down-payment requirements. Hence, the UK firm negotiated with the Russian supplier who eventually agreed that they provide a Standby Letter of Credit as their payment term.
Since they are already aware that they cannot seek assistance from their bank to issue the SBLC for the reason that it will require them to back it with 100% cash margin as collateral, they searched for other options. Fortunately, a friend of them suggested looking for private companies or firms which can provide them Standby LC. The UK-based company pursued through the internet for companies that do provide SBLC (MT-760) and Bronze Wing Trading’s Google Ads caught their attention. They followed the link and got directed to the official website of Bronze Wing Trading. The UK-based company scanned through the procedure on the website and was so happy to learn that BWT was a direct provider of Standby LC without asking for any collateral.
They established contact with Bronze Wing Trading via e-mail to further explain about their steam-coal transaction and the required Standby Letter of Credit. After which, they’ve submitted their steam-coal sales and purchase agreement to BWT. Bronze Wing Trading studied the UK firm’s steam coal deal and requested them to further provide the company’s legal documents. BWT re-evaluated their transaction in the light of documented contents and ultimately approved the request for SBLC.
The UK Company visited BWT’s office in Dubai to secure their transaction. Their meeting with BWT’s CEO was rewarding and they were comfortable with BWT, being capable to provide the required Standby Letter of Credit. Hence, they paid the required SBLC issuance fee charges. BWT, on the same day, was able to provide their clients the swift copy of the SBLC MT-760, which was transmitted to their Russian steam coal supplier’s bank (beneficiary’s bank).
The UK-based company was contented on the materialization of steam-coal business deal, as it proved to be a profitable-transaction; the company ever handled in their entire trading business career. They were grateful and appreciative of the services rendered by Bronze Wing Trading, who fulfilled their Standby LC requirements, as their transaction was carried-out promptly with high returns.