• Two categories – Sight and Usance depending on agreement between applicant and beneficiary
  • Secured way of buying/importing goods
  • Facilitates imports
  • Payment to be made by bank only upon receipt of compliant document
  • Secured method of international payment
  • Acts as payment guarantee to the beneficiary
  • Documents handled by the bank ensuring their legality
  • Ensures timely delivery of goods by the supplier
  • Bridges the gap between payment for imported goods and receipt of funds through subsequent sales
  • No missed business opportunities due to inadequate cash flow
  • Gives buyer greater flexibility and liquidity
  • Timely payments to suppliers will enhance your business reputation