Bronze Wing Trading, the Standby Letters of Credit Provider in Dubai supported the Nigerian buyer to import gas oil from Russia using SBLC MT760. Continue reading this story to know the gas oil demand of the buyer, challenges faced in arranging cash funds & the support we provided for the client.
The outbreak of COVID-19 led to a major reduction in the production of oil & gas in Nigeria. Hence, to meet the emerging demand for gas oil, the buyer from Nigeria decided to import gas oil from overseas and supply it to the local market to earn some profits. So, they searched for suppliers of AGO and found the genuine one from Alibaba B2B Portal.
The buyer explained their requirement to the seller. And then, they agreed to supply the required amount of gas oil. Since the buyer was struggling with liquidity and cash shortage; they were unable to proceed with the purchase of AGO. So, the buyer discussed with the seller; and they both agreed to use Standby LC to conclude their AGO deal. As SBLC MT760 provides a payment guarantee, the seller was ready to supply the gas oil without getting upfront.
To get the Standby LC, the buyer contacted their bank. Since their bank required a 100% cash margin to issue the SBLC MT760. But the buyer didn’t have enough cash funds; so, they can’t able to comply with their bank norms. Further, they searched for some other options. Finally, via referral, they contacted Bronze Wing Trading, the SBLC Providers in Dubai with their SBLC request.
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Being the SBLC Providers in Dubai, we analyzed our client’s SPA of gas oil and approved their SBLC request. Since we didn’t ask for any cash margin, the client felt very much satisfied to work with us. And then, they visited our office in Business Bay, Dubai to sign the service agreement & pay the admin charges.
Our team started working on their SBLC transaction with our bank by blocking our bank limit & structured their SBLC draft with our bank. Then, we sent the SBLC draft for the client’s approval to verify whether it was done as per the client’s requirement. Further, they verified the draft and conveyed their approval to us. Finally, we instructed our bank to issue the required SBLC as per the approved draft to the seller’s bank via SWIFT MT760.
Since we extended our trade finance support on behalf of the client to conclude their gas oil import deal; they felt very happy and conveyed their heartfelt thanks to us. Also, they informed us that they will stand as an envoy in Nigeria to promote our trade finance services to the trader’s community.
This is how we assisted one of our clients in availing Standby LC in just 2 days in favor of their seller in Russia without pledging cash margin!
Are you in need of a Standby LC to import goods from overseas? Contact Standby Letters of Credit Providers in Dubai with your SBLC request & get a FREE Quote in just 24hrs!
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