LC Procedure
Trade
Instruments
Documentary credits through Trade Finance Services have worldwide acceptability and can be issued via TELEX or SWIFT. Anyone can open a letter of credit with us for a fee despite their credit rating or standing with the bank or lender. Through our services, you can:
Increase your trade facility with your suppliers
Find new suppliers with less of a risk
Eliminate your risks of tying your cash flow
Existing trade importers are perfect for a middleman as it allows you to work on much larger deals provided; they can fit into our structure.
Our Services Include:
Commercial Letters of Credit.
Back to Back Letter of Credit issued by reliance on an incoming letter of credit. It hides the identity of your supplier or manufacturer.
Standby Letter of Credit payment guarantee, payment bond, and SBLC. (Used for payment obligations from one to another.)
Advance Payment Guarantee advance payment bond issued to a contractual obligation alongside advance payment.
Commercial Letters of Credit.
Revolving Letters of Credit.
Bid Bonds (Tender Guarantee) offer securities when business is done across country borders. We provide tender guarantees to bid on a construction project or a confirmed letter of credit to buy goods or many different types of commercial letters of credit and bank guarantees.
Performance Guarantee performance bond. A guarantee that clients will fulfill their contractual obligations.
What Is The Process Of Applying For A Letter Of Credit?
- Fill out our application to get a quote.
- After some paperwork, we will provide you with a quote for the fee and a letter of credit draft.
- Pay our fees and get indemnity documents signed and notarized.
- Get our letter of credit draft accepted with your supplier/beneficiary.
- One of our partner financial institutions will issue your letter of credit and SWIFT to the beneficiary's bank.
- The beneficiary will send documents back to our financial institution and ship your goods to your port of destination.
- When the documents arrive, we will fax copies of all of the documents to you. We will also check the documents as per the terms. Documents include a bill of lading, invoice, insurance certificate, certificate of origin, and whichever documents you require.
- When the goods arrive, they go into a bonded warehouse where you can inspect them. If the goods are satisfactory, you pay us the money for the supplier in the bank in exchange for all of the original documents.
Fill out our application to get a quote.
After some paperwork, we will provide you with a quote for the fee and a letter of credit draft.
Pay our fees and get indemnity documents signed and notarized.
Get our letter of credit draft accepted with your supplier/beneficiary.
One of our partner financial institutions will issue your letter of credit and SWIFT to the beneficiary's bank.
The beneficiary will send documents back to our financial institution and ship your goods to your port of destination.
When the documents arrive, we will fax copies of all of the documents to you. We will also check the documents as per the terms. Documents include a bill of lading, invoice, insurance certificate, certificate of origin, and whichever documents you require.
When the goods arrive, they go into a bonded warehouse where you can inspect them. If the goods are satisfactory, you pay us the money for the supplier in the bank in exchange for all of the original documents.
Frequently Asked Questions
Everything you really need to know about Letter of credit
I generally open letters of credit through my bank. How are your letters of credit different?
The letters of credit that we open are opened using our providers’ bank accounts at prime banking institutions. When you open the letter of credit through provider’s bank, you use their credit line. When you open through us, you use those credit lines.
Why do I need to pay your fee before you open the letter of credit? Can’t I take your fee out of the profits of our transaction?
We do not participate in the transactions of our clients as a party to the transaction other that a provider of certain financing. Therefore, we do not participate in the profits of our client’s transactions. Our fees are the same regardless of the profit margin in the transaction.
Can I cancel my letter of credit after it has been opened?
All of the instruments that we issue are irrevocable and cannot be canceled except by the beneficiary.
What type of collateral do you require to open a letter of credit?
In most case we do not require a specific collateral deposit to open a letter of credit. We offer transactional based finance. When a client wishes to open a letter of credit, he presents us with the details of his transaction so that we can make a decision about the transaction on its merit. The final decision by our company to enter into a transaction is made according to a set of criteria What is the charge for opening a letter of credit? The letter of credit charge depends on a number of factors. Our agents can provide you with an up to date tariff schedule. What is the maximum size letter of credit that you open? We are able to open letters of credit of almost any size. We consider the complexity of the transaction; the goods that are being trades; and, other factors having to do with the parties to the transactions and where they take place.
What is the charge for opening a letter of credit?
The letter of credit charge depends on a number of factors. Our agents can provide you with an up to date tariff schedule.
What is the maximum size letter of credit that you open?We are able to open letters of credit of almost any size. We consider the complexity of the transaction; the goods that are being trades; and, other factors having to do with the parties to the transactions and where they take place.
For what type of goods do you open letter of credit?
We can open letters of credit for any type of goods provided they fall into our ethical and legal criteria. That said, we will not get involved in transactions involving weaponry or ammunition under any circumstances.
If opened a letter of credit to my supplier, but he did not ship the goods. Will you refund my fee?
Once the letter of credit is opened your fee cannot be refunded. We recommend to all of our clients that they need to assure themselves of their supplier’s ability to perform before opening any banking instruments to them.
NAAS is a full-service financial advisory delivering solutions that address client-specific challenges and opportunities , dedicated to providing outstanding customer service, flexibility, and great value in financial solutions and optimizing the functionality and efficiency of the system.
Our Contact
Address: #319, Garhoud Star Building,Near GIGICO
Metro Station, Dubai, UAE.
Email: [email protected]
Phone: (+971) 50 804 4090
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