By issuing an import Letter of Credit on your behalf, CB Bank gives the assurance that your overseas supplier will receive payment only when the order is fulfilled. Your company is also protected from the risk of not receiving the goods after making payments to the suppliers since the supplier will be paid only if the presented documents are compliant as per the terms and conditions of the LC.
FEATURES AND BENEFITS
Benefits to Importer (Buyer)
- Secured and reduced financial risk − payment will not be made to the seller who does not fulfill the order or has missing parts in fulfilling the provision of LC
- Enhanced cash flows since you do not need to make upfront payment to the supplier
- Same day LC issuance when the application meets all the application requirements by 3.00pm on each business day
Process
- Importer (buyer) submits LC application to CB Bank.
- CB Bank issues LC and send it to the LC advising bank; usually the exporter (seller) /beneficiary maintains an account with the LC advising bank.
- Upon receiving the LC, the seller ships out goods and delivers trade documents to the exporter's (seller's) bank, as per terms and conditions of the LC. The exporter’s bank then sends the trade documents to the LC issuing bank / importer’s bank (CB Bank).
- CB Bank notifies the importer (buyer) when the trade documents have been received against this particular LC certifying all terms and conditions have been complied with.
- Upon full compliance with terms and conditions of the LC, CB Bank would initiate the payment within 5 business days. If the documents are discrepant i.e. not as per LC terms and conditions, CB Bank would obtain the Importer's (buyer's) acceptance of the discrepant documents. If the discrepant documents are accepted by the importer/applicant, CB Bank will pay to the seller's bank.
- Thereafter, the importer (buyer) can collect the trade documents including transport documents e.g. Bill of Lading or Air Waybill from CB Bank to clear the goods from the Shipping Company.
RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges
REQUIREMENTS
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Completed LC application form
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Request Cover Letter with Company Letterhead
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Sales contract
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Proforma invoice
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Import license issued by Ministry of Commerce (both original and copy)
