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UAE Buyer Imported Sugar from Brazil by Availing Trade Finance in Dubai

Bronze Wing Trading, the Trade Finance Provider in Dubai supported the UAE trader to import Sugar from Brazil by providing a Standby Letter of Credit at ZERO Collateral.

Doing global trade transactions can be risky for sugar traders, as they usually deal with buyers & sellers from different legal jurisdictions. Also, this increases the risks of both parties such as non-payment for the supplied goods; which leaves the seller with lengthy waits to recover the payment. Also, on the other hand, the supplier’s negligence in complying with rules will end with the buyers with large fines and tariff bills. So, to secure your trade deals from the risks involved, most of the traders are using Standby LC, as their payment term.

Requirement of Trade Finance in Dubai

UAE has witnessed a growing demand for sugar this year. By knowing the emerging demand, a UAE buyer decided to earn some profits by importing sugar from overseas and supply to the local market. So, they searched for the Sugar supplier via portals. As a result, they have chosen the one from Brazil. Since the buyer required 600,000MT of sugar, the seller agreed to supply them 50,000 MT.

As both the buyer and seller were well aware of the risk involved in global trade deals; they both agreed to use Trade Finance to conclude their sugar transaction.

Get a Standby Letter of Credit at ZERO Collateral Apply Now!

According to their agreement, the buyer needs to provide a Standby Letter of Credit from a rated bank to the seller’s bank account. On the other hand, after receiving the SBLC, the seller has to provide a performance bond of 2% value of the contract to the buyer’s bank. And then, after the shipment of sugar to the buyer’s port, the seller has to submit all shipping documents to the buyer’s bank for confirmation & payment. So, they can receive the payment within 5 working days.

Since the buyer and the seller mutually agreed on all the above terms; they signed the SPA to conclude the sugar import using SBLC MT760.

Trade Finance in Dubai – Standby Letter of Credit – SBLC MT760

Buyer Availed Trade Finance in Dubai

To get Standby LC, the buyer contacted their bank. But the bank was ready to lend their help to the buyer upon 100% cash margin, additionally its charges. Already, the buyer faced financial crashes in their running business; so they can’t able to arrange the liquid cash to provide cash margin for the issuance of SBLC MT760. So, they searched for the solution and finally came to BWT, the genuine provider of Trade Finance Services in Dubai.

Standby LC to Import Goods on Credit BasisGet Free Quote!

Within the very first day, we approved their SBLC request as the Buyer complies with all our terms and conditions. Since the buyer wanted to conclude the deal on an urgent basis, so, they signed the service agreement. Also, they paid the admin charges on the same day. Also, we worked with our bank in regards to their sugar deal and provided the MT760 draft for their review. And then, the buyer approved the MT760 draft with the consent of their supplier and paid the issuance fee charges. Then, within the next 24hrs, the seller’s bank received the MT760 on behalf of the buyer from our bank account.

The Successful Deal Conclusion by Availing Trade Finance in Dubai

With the issued Standby LC, the seller started the first shipment of sugar (12,500 MT) packed in 50kg bags via sea freight. And then, the buyer received the sugar & started supplying it to the local market & earned handsome profits. Finally,  the buyer conveyed their heartfelt thanks to Bronze Wing Trading stating as follows, “Thank you, Team! You did a great job in helping me to get an SBLC from a good-rated Bank. Also, the help which you did in this COVID crisis is really great!”

This is how we, the genuine SBLC Providers in Dubai have assisted a UAE trader to import Sugar from Brazil using SBLC MT760.

Get Trade Finance in Dubai

If you’re looking to get a Standby LC at ZERO Cash Margin, contact us today! Our team of trade finance experts can assist you with your SBLC request & get it issued from International Repute Banks in just 2 days.

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