A US-based company had a contract to supply large quantity of sugar to their Ex-buyers in Africa. So, the company discussed with sugar supplier in Brazil and agreed on price structure, shipment and other terms of contract. But, the US-firm did not have enough capital in their bank account to prove their financial strength. They did not want to loose such a great opportunity by which they can earn a good amount of profit. In that case, Letter of Comfort – MT799 was the only solution for the US-firm to acquire the sugar supply from their seller.
The Problem: Need Letter of Comfort To Prove Financial Worth
Thus, they found many banks that could provide the desired BCL. But it was more than a cumbersome and painstaking affair for the US-firm. Because, most of the Banks (if not all) need the company to deposit 100% cash margin or fixed deposit against their requested BCL MT799.
The Solution: Bank Comfort Letter provided by Bronze Wing Trading
They got a chance to visit the Bronze Wing Trading office in Dubai. They also got to know that BWT is an expert in providing such BCL – MT799 without obtaining any financial collateral.
The sugar buyer (US-firm) followed BWT’s simple course of action and submitted the copy of “Full Corporate Offer” of sugar deal and other relevant legal documents. Once all the essential formalities were completed including the payment of BCL issuance fee charges. We processed the case with our bank to establish the require BCL. Our bank issued BCL via MT799 to the seller’s bank to prove the buyer’s financial ability to purchase the sugar quantity. By this notification of MT799 the supplier then signed the Sales and Purchase agreement with the US-firm.
As a result, the supplier made available valid Proof of Product (POP) of sugar quantity to verify by US-firm. In return, the buyer provided the Letter of Credit to the seller. This LC also they’ve obtained from BWT. Finally, the buyer lifted the sugar quantity as per their signed SPA and supplied to their Ex-buyers in Africa.