Looking to avail Letter of Credit to facilitate your global trade transaction? But, not sure, where to get started? Also, don’t have an idea of what documents are required for LC opening? In this blog, we’re going to explain the required documents; and the process to avail Letters of Credit from rated banks.
LC at sight or MT700 is a written statement issued by a bank on behalf of its client. Further, this acts as a payment assurance to the exporter; upon the submission of papers that complies with the issued MT700 terms. In certain cases, if the buyer unable to make the payment; then the bank will cover the payment terms. And, this gives assurance to the supplier that they will receive the payment on time.
On the other hand, it also secures the buyer. Because no payment request rises until the goods would have been shipped, as agreed in the contract. By securing the trade between the buyers and the sellers, Letter of Credit plays an active role in either global or domestic trade.
If you do decide that MT700 can be the best option for your deal. Then you need to consider which type to use. Mostly, Confirmed and Irrevocable are used, as it is the most secure and the most popular type.
You can approach your bank to open an MT700 on your behalf. For this, the bank will ask you to provide a Signed Pro forma Invoice, Sales & Purchase Contract; along with other related documents. Also, your bank may demand you to keep a certain percent of a margin amount to issue the Letters of Credit.
In case, if you don’t have any bank facilities or no cash funds available to keep as a margin. Then, they may deny your request. And also, on the other hand, if you are a new account holder; and they don’t know your financial back ground. Then also you cannot expect any trade finance support from banks. In such a case, the only option available to avail MT700 from the Letter of Credit Providers for your imports.
Being a Letter of Credit Providers, Bronze Wing Trading can help you by providing MT700 for your trade deal from our bank account. Also, we do not demand any cash margin from your end. So, if you’re in need of trade finance to conclude your trade deal, contact us today!
The list of documents needed for opening Letters of Credit on your behalf from our bank account listed below.
If you’re ready with the above listed papers, then, you can send a request to us to avail MT700 on your behalf. Further, we will study your trade deal; and if it complies with all the terms, we will approve your request. And then, we will proceed with structuring your deal. Once you furnish the charges, we will open an LC from our bank account on your behalf. Further, it would transmit it to the seller’s account via Swift MT700.
Also, for LC Opening, no need to provide cash margin; or to block your working capitals. You can avail MT700 within 48 working hours without pledging any tangible collateral!
To avail MT700, fill out the online form given at our website or write to us via email.