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 LC Issuance process to open LC MT700 at ZERO Cash Margin:
A Letter of Credit is a written undertaking issued by a bank guaranteeing the buyer’s payment towards the seller. It is also called as irrevocable LC, Import LC, LC at Sight, LC MT700, DLC MT700. Further, it assures the seller that they will receive the payment for the supply of goods, once they submit the shipping documents.
Due to the nature of international trade dealings & its risks factors including distance, different laws in each country, and trust issues between the traders, the use of Letter of Credit has become the vital part of global trade. When a buyer & a seller from two different parts of the world decided to do business, there might be an uncertainty of trust and payment will arise. To bridge the gap between the traders & to build the trust, LCs are being used.
There are different types of LCs available. Usually Letters of Credit or LC at Sight valid for 90 days and 180 days are always irrevocable. It means a bank provide an irrevocable commitment that the seller will get paid once they comply with the terms stated in the issued Irrevocable Letter of Credit. Also, it assures that in case of some unforeseen crisis, if the buyer is unable to make the payment or the buyer went bankrupt, then the bank will take the responsibility to fulfill the payment commitment as agreed in the contract. Hence this is an irrevocable commitment made by the bank on behalf of the buyer towards the seller, LCs are mostly preferred as the Payment Term in International Trade.
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 nonpayment by the buyer for the supplied goods. Hence, the traditional payment method used earlier for global trade has failed. And then, MT700 has been introduced by International Chamber of Commerce (ICC) to secure the interests of both parties involved in trading.
While using LC Payment Term, the buyer’s bank assures to pay the seller for the supplied goods; upon complying with all terms & the submission of documents as stated in the issued DLC. In case, if the seller fails to submit the documents before the deadline, the LC will be expired. And then the bank will return the funds to the buyer’s bank account which they deposited while LC Opening. In this way, the risk of non-payment & the non-delivery of goods goes down to zero percent.
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.
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). And it should be clearly stated on the issued LC. For more info on the Cost, Contact us.
Bronze Wing Trading L.L.C., the Letter of Credit Providers in Dubai provides DLC MT700 on your behalf without any cash margin. By offering LC from rated banks, we help traders 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, Fill up the Form Available Here!Fill up the Form Available Here! We can provide you the required LC at Sight from European Banks at Zero Cash Margin!
Apply for DLC MT700 now and conclude your trade deal within 48 working hours!