If you’re looking to conclude your import deals without investing your cash funds, then choose LC at Sight as your payment term. But have you exhausted your available bank facilities? Or is your bank is asking for 100% cash margin to issue MT700? No worries, we are here to help you! Read our Letter of Credit Issuance process to know how we can serve you with your LC needs.
Letter of Credit Issuance for our Client
The client who owns a company in Dubai Free Zone required tons of copper millberry scrap to expand their production line. So, they decided to purchase the required scrap from a reliable Indian Seller. Since both the parties are well aware of the trading risks involved, they decided to secure their deal by using Letter of Credit.
The buyer started looking for the option to open MT700. The buyer has already used their facilities available for their existing import deal. So, their bank asked for 100% cash margin to issue the MT700. Due to economic slash down, the client didn’t want to invest their working capital for this upcoming deal. So, they searched for other options to get DLC without cash margin and found us via one of the broker in Dubai.
Once we received the DLC request, we analyzed & approved their request. And accordingly, as per our LC issuance process, we proceeded accordingly. After receiving the charges & the required documents, we informed our bank to issue the LC in favor of the Indian seller. After the receipt of DLC, the seller started the shipment of the copper scrap as per the agreed terms.
This is how we facilitated LC at Sight for our client in Dubai to import goods from India.
How LC Assist the Buyer to Conclude Their Deal?
The use of Letter of Credit is really important when it comes to international trade, and especially while dealing with unknown traders. LC gives assurance to both parties by stating that the seller will receive the payment, if they comply with all the terms as stated in the issued MT700. Also, it assures the buyer that the payment will be released only if the seller ships the goods as per the agreed terms.
When it comes to this copper scrap import deal, the MT700 we provided on behalf of the buyer gives the required assurance. So, the Indian seller supplied the goods without availing any advance payments from our client.
By acting as a trust bridge between the buyer & the seller, Letters of Credit assisted the buyer to conclude their import deal with the supplier successfully.
How to get Letter of Credit from Banks?
If you have decided to import goods from overseas using LC at Sight as payment term, then contact us today! We are here to support importers by providing LC at Sight on their behalf without demanding cash margin or collateral.
Submit your requirements today & get the LC issued within 48hrs!
