LC MT700 Issued to Dubai Buyer to Import Nuts and Spices from Overseas Supplier

Despite of the thwarting progress of pandemic all over the world, there is a positive outlook on import-export business. Being a strategic location in the global market, and well connected by both sea and air, Dubai, UAE acts as a major hub for imports and exports. And now the Importers and exporters are coming back to normal routine by giving their business fresh start. Importers are doing their proper research in finding the right products which is currently in-demand in the market and then starting their import-export business. And this helps them to earn more profits.  

Mr. Riyan, a buyer from Dubai found that Nuts and Spices are having more demand in the market and decided to import these goods from overseas. They found a reliable seller from overseas. Since the buyer from Dubai is going to deal with an unknown supplier, they decided to secure their trade transaction by using LC Payment term.  

Whatis LC Payment? 

LC Payment is the most popularly used payment method in international trade transactions. It’s common among importers and exporters, as it gives assurance to both buyer and suppliers. Called as Letter of Credit, LC is a written undertaking issued by a bank on behalf of buyers to assure the sellers that the payment will be made for the supplied goods, once the shipping documents are submitted to the bank, as stated in the issued LCs.  

HowMr. Riyan Found Us for the MT700 Requirement? 

When Mr. Riyan was in need of MT700 to import nuts and spices from overseas, they decided to contact their bank with their request. Since Mr. Riyan has utilized all their bank facilities, they can’t able to open DLC from their bank. So, they contacted another bank where they have their account to open MT700. But, that bank asked him to provide 100% cash margin to open DLC on their behalf. 

Since the client has already invested their funds in their ongoing business, they didn’t have enough cash funds. So they decided to contact LC Providers in Dubai.  While surfing online, they came across our post on DLC issuance and contacted us with their LC request. 

HowWe Facilitated the Client with their LC Issuance? 

After receiving the request from the client, our trade finance consultants did their complete analysis on the trade deal. Once it was approved by our team, we sent a service agreement to be signed by the client before starting the work on their transaction. Immediately, the client signed the agreement & sent to us. Along with that, they also made the payment for the service charges.  

As the next step, we started structuring their MT700 draft with our bank and sent it for the client’s approval. The client verified the draft and paid the issuance fee charges to initiate the LC issuance with our bank. Once all the process was done, we requested our bank to expedite the process and issue the required Letter of Credit to the supplier’s bank. Accordingly, within 48hrs, the seller received the LC on behalf of the buyer. 

DealConcluded Successfully with LC Issuance  

With the MT700, the supplier started the shipment of bulk quantity of nuts and spices to the buyer’s port. And the deal concluded successfully! If you require a commoditytrade finance support to import goods from overseas, contact us today! We, the Letter of Credit Providers in Dubai can help you by facilitating the required LCs from our European Bank account at ZERO Cash Margin!