Trade Finance

Trade Finance

Letter Of Credit

United Royal Bank issues import letters of credit on behalf of customers to her beneficiaries anywhere in the world by utilizing lines availed by highly reputed correspondent banks. These banks are positioned in strategic business locations all over the world.

  • The approved trade finance facility is required if there is no cash collateral provided by importer
  • The credit worthiness of the bank substitutes for that of the importer
  • It allows for advance payment of up to 15% subject to documentation requirement.
  • Payment is made after the presentation of compliant documents by the exporter to the bank nominated in the LC
  • It is operated under guidelines clearly by the Uniform Customs and Practice, UCP Publication No. 600

  • Benefits:
  • In most cases the Importer avoids partial pre-payments or deposit
  • It helps to reduce the risk of non-performance of the exporter. If the exporter does not ship the goods they will not get paid
  • Importer will receive timely delivery of the goods because the LC terms dictate latest acceptable shipment date
  • Foreign exchange can be procured from the official market (subject to certain restrictions)

  • Confirmation Lines

    The Letter of Credit Confirmation Line (LCCL) will ensure that confirmation is added to your letter of credit pending when the bid is won on your behalf. The LCCL does not involve actual cash outflow, as it is essentially a payment guarantee from United Royal Bank accepted by our foreign correspondent bank. However, your offshore suppliers can discount this guarantee on the counters of the same advising/confirming bank.