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How Can I Get My LC Application Request Approved?

Are you running an import-export business? Are you going to import goods from your overseas supplier? But facing a lack of cash flow or lack of trust to proceed with your deal? Now you can do your imports & exports with confidence by making use of the Letters of Credit. Opening Letters of Credit is not an easy task, as banks follow some stringent norms to issue the LC. So, in this blog, we are providing some simple tips which will help you to get your LC Application approved. Before that, let us discuss – Letters of Credit Definition, the Documents Required for a Letters of Credit & How to Apply for LC at ZERO Collateral.

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What is Letters of Credit?

Letters of Credit is basically an undertaking by a bank on behalf of the buyer which assures payment to the seller within a specified time, against the presentation of documents strictly in compliance with the terms stated in the issued MT700. Nowadays, LC has become a vital aspect to safeguard the trade transaction, due to differing laws in each country and the risk involved in dealing with unknown parties.

Letters of Credit is also called LC MT700, DLC, & LC at Sight. LC works in favor of both buyer & seller. By using LC as the payment term, the seller gets assured that if they present the documents on time as stated in the issued LC, then they will receive the payment for the supplied goods without any default. On the other hand, the buyer is assured that the bank will release the payment only after the thorough valuation of the presented shipping documents. So, using MT700 reduces the risk of paying the supplier without receiving the goods.

LC Application – Letter of Credit Providers in Dubai – LC at Sight – MT700

Documents Required for LC Application

To start work with your LC application, you need to keep the following documents in hand:-

  • Pro-forma invoice or signed SPA of your trade deal
  • Copies of Company Registration, i.e., Trade License, or Company Incorporation Certificate
  • Latest 6 Months Bank Statement
  • Passport Copies & Utility Bills of the Authorized Signatory to prove Residence and Company Address

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If you have all these documents in hand, then you can move on to the next step of LC opening. Also, if you contact your bank to open LC, along with all these papers, your bank will demand a 100% cash margin to proceed further. In case, if you don’t have enough cash funds to provide a cash margin, then your request will be declined.

But, we are here to support you by getting your LC request approved in 24hrs!

How to Apply for LC at ZERO Collateral?

Even if your bank declined your LC request, we can provide LC from our bank account with reputed banks at ZERO Collateral. All you need to do is – Submit your MT700 request to us along with the proforma invoice or SPA of your trade deal. Then, our team will review your request & come back to you with a Free Quote.

If you are ready to move ahead with our proposal, we will start working on your LC transaction with our bank. Further, we will provide the DLC issued in 48 working hours from our bank accounts. Unlike banks, we will not ask for any cash margin. We can extend our own facilities available with European Banks & will provide the DLC on behalf of your company at minimum service charges.

Contact Bronze Wing Trading L.L.C., the LC Providers in Dubai to discuss your LC requirement in detail!

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