It is an import financing scheme to finance importers for goods, services and other trade related transactions. Exporters/sellers will get payment after their shipment and presentation of complied documents while importers can make payment on maturity.
| Role of CB Bank | : | Financing Bank and Trade service product provider |
| Tenor | : | Based on the tenor specified in UPAS L/C |
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Can negotiate for better price in the sale contract as the sellers will receive payment immediately after the shipment
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Receive goods and enjoy longer payment tenor
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Strengthen relationships with sellers by allowing for payment at sight
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Importer applies UPAS LC to CB Bank.
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CB Bank issues UPAS LC and request confirmation to Overseas Bank.
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Overseas Bank advises the LC to Exporter (Overseas Bank’s Client).
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Exporter presents documents to the Overseas Bank for discounting.
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Overseas Bank discounts documents at Sight Basis and pays to Exporter.
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CB Bank pays to Overseas Bank at Maturity.
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Importer pays to CB Bank at Maturity.
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Importer (client of CB Bank) applies for UPAS LC.
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CB Bank issues UPAS LC and Reimbursement Authority to Overseas Bank.
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Overseas Bank advises the LC to Negotiating Bank.
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Negotiating Bank advises the LC to the exporter.
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Exporter makes shipment.
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Exporter sends document to the Negotiating Bank.
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Negotiating Bank sends documents to CB Bank and claims Reimbursement from the Overseas Bank.
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Overseas Bank honors Reimbursement Claim and makes payment to Negotiating Bank.
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CB Bank pays to Overseas Bank at maturity.
Pre-arranged fees & charges
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UPAS Application Form
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Request Cover Letter with Company Letterhead
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Sales contract
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Commercial invoice
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Certificate of Exporter/Importer Registration
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Import/export license issued by Ministry of Commerce (both original and copy)