Features and Benefits

• Governed under URDG 758 or Law of a Country
• Irrevocable- the terms and conditions cannot be changed without the agreement of all the parties (Applicant, Beneficiary and Issuing Bank)
• Payable on Demand
• Transferrable and Assignable (Discretion of issuing Bank)

For Applicant

• Demonstration of Solvency of the Applicant
• No Requirement to lodge cash with Beneficiary
• Comfort of holding your cash in deposit and earning interest.
• Cash/Security available for business expansion
• Opportunity to negotiate terms as payment against claim is assured
• Cost saving compared to Bank Loans

For Beneficiary

• Protection from financial loss
• Loss Protection if transaction/s not as per plan
• Surety of a Bank- Assured Payment- Reduction in Risk of Non-payment
• No examination whether the respective contractual obligations of the Seller or the Buyer have or have not been performed.
• Correct Claims are not contestable
• Assured payment on non-compliance of terms by Applicant

Eligibility

All forms of legal entities engaged in trading, manufacturing or other productive economic activities with sanctioned credit limits. Please contact Bank for credit facilities.

Documents Required

• Application
• Trade License
• Copy of relevant Contract/Agreement
• Draft format for Guarantee, if any.
• Modest collateral requirements.

​​Terms & Conditions Apply