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