This is a facility provided by the bank to its import customers to enable them import the goods and services from abroad without necessarily making payment in advance to the exporter. Benefits include:
Payment is guaranteed by both the issuing bank and the confirming bank as long as compliant documents are presented.
Mitigates the buyer/country risks.
Can allow multiple/continuous shipments.
Allows access to other products e.g. pre-shipment finance and structured finance.
Quality of products and price guaranteed by an independent pre-shipment inspection company.
Ensures delivery is done within schedule and payment date is fixed.
Requirements
Available to Family Bank customers.
Import LC opening.
A credit facility or cash margin.
Declaration payment for imports form duly signed by the customer.
Pro forma invoice from the seller or provider of services.
Copy of Import Declaration Form (IDF).
Certificate of insurance or copy of marine insurance policy, if covered locally.
Mdosi Junior