We can assist you in your trade deal by providing the Documentary Letter of Credit – DLC MT700 on behalf of your company from European Banks to conclude imports and exports.
Follow the simple Letters of Credit Issuance process to open LC MT700 at ZERO Cash Margin:
A Letter of Credit is a written undertaking issued by a bank to the seller (beneficiary) at their client’s request. It is also called as irrevocable LC, Import LC, DLC, LC MT700, DLC MT700 or MT700.
Usually, Letters of Credit or LC 90 Days after Sight or LC at Sight 60 Days are always Irrevocable. It means the issuing bank is irreversibly assuring that the seller will get paid, once they comply with the LC Payment terms. In certain cases, if the buyer is unable to make a payment or the buyer went bankrupt, then the bank will be liable to make the payment. Hence, Irrevocable LC is the major financial tool for financing global trade.
Further, once the issuing bank receives the LC documents, they will pay the supplier’s bank, if it complies with the LC Payment terms. For this, the seller has to submit all the documents as per the credit terms to their bank. As well, they have to prove that the goods are accurately supplied as per the proforma invoice / sales contract.
The beneficiary of MT700 may also obtain a packing credit or borrow funds from their bank to mobilize their exports. Upon shipping the goods to the buyer, the seller will settle the advance funding to their bank by the proceeds of the supplied goods.
When it comes to global trade, buyers run the risk of not receiving goods from the supplier for which they have already paid. And, sellers run the risk of non payment by the buyer for the goods which they have already supplied. Hence, the traditional payment method used earlier for international trade has failed and that’s when MT700 is introduced.
In Letters of Credit, the buyer’s bank promise to pay the seller for the supplied goods, once the seller fulfills the terms as per the signed contract. The seller needs to submit all documents to their bank before the agreed deadline. In case, the required documents are not submitted within the specified time period and the LC expired. Then, the buyer’s bank returns the funds to their bank account which they deposited at the time of LC opening. In this way, the risk of non payment and non delivery of goods goes down to zero percent.
Letters of Credit are used worldwide for both local and global trades under the rules of UCP’s latest version.
In general, the following are the parties involved with Letters of Credit. Here’s what each party role and what it does:-
Applicant: The Applicant or the buyer who requests the bank to issue the DLC MT700 in favor of their supplier.
Beneficiary – The supplier who receives the MT700 in their bank account, called LC Beneficiary.
Issuing Bank – The bank who issues the MT700 on behalf of their customer, called LC Issuing Bank.
Advising Bank – The advising bank receives the MT700 from the issuing bank and advises the LC towards the seller’s bank.
Negotiating Bank – The seller’s bank who receives the LC works also as a negotiating bank on their client’s behalf.
Not just the importer, but the exporter also gains lots of benefits by using Import LC as a payment term. And it includes:
This type of Letters of Credit cannot be amend or changed without the consent of all parties involved. Most of the traders prefer Irrevocable LCs. This is because Irrevocable LC gives the security that most suppliers want.
As it indicates, this can be transferable to the principle supplier upon request of the 1st beneficiary. This is because, in some cases, the first party is playing the role of a middle party under this type of Letters of Credit.
In some cases, sellers may not trust issuing bank that provides LC on behalf of the buyer. So, they might require a bank in their home country to confirm the LC.
This type of LC commonly used in domestic and global trade. This guarantees that the bank will release the payment, once the seller submits all the documents as mentioned in the credit.
This type of Letter of Credit Back to Back normally issues against the Master LC. Here, at first, the LC opened in favor of an exporter from an importer’s bank. Then, on the basis of the Master LC and the credit facility available in the exporter’s account. The exporter’s bank will open a new LC, in favor of their principal supplier. To know about the Back to Back Letters of Credit process, contact us!
The cost of a Letters of Credit may vary based on the amount & its tenure. Usually, the cost may include bank commission, processing fee & swift charges. Further, the cost is borne by the Applicant (buyer). For more info on the LC Cost, Contact us.
Bronze Wing Trading L.L.C., the Letter of Credit Providers in Dubai provides DLC MT700 without any cash margin on your behalf. By offering LC from rated banks, we help importers / exporters who do not have enough facilities in their bank account to conclude their trade.
If you are looking for a secure, easy, and reliable way to get MT700 to conclude your trade, contact us now! We can provide you the required LC at Sight from European Banks at Zero Cash Margin!
Apply for DLC MT700 now and conclude your deal within 48 working hours!