Ancillary Banking Service in Panchkula

A documentary letter of credit is a guarantee that provides assurance to the beneficiary that he will get the payment which has been mentioned in the documentary letter of credit. There is a condition that the compliant presentation should be under the documentary letter of credit. This documentary letter of credit is commonly used for international transactions where both the buyer and the supplier have a new relationship and operate from different countries.   A documentary letter of credit is a really crucial financial instrument for meeting the short-term needs. It enables the recipients for obtaining the important credit for financing the project. The recipients hope of getting sufficient return for settling the due amount in the provided time frame.   The documentary letter of credit showcases the documents and information that are needed by the beneficiary on presentation which includes the expiry information like date and time of the letter. The compliant presentation is a kind of guarantee given to the beneficiary by the documentary letter of credit for in order to get paid. The only criterion is that the delivery conditions should be met.   It is the responsibility of the bank that writes the letter of credit on the applicant’s behalf to ensure that the terms and conditions which are required for documentation purposes under the credit are met duly before any amount is paid to the supplier. Documentary letter of credits come under the governance of the International Chamber of Commerce (ICC) rules. These rules for the letter of credit are known as Uniform Customs and practice for documentary Credit (UCP). The current version which is in effect is the UCP600 from July 1st, 2007. The concerned parties to a documentary letter of credit are the issuing bank and the beneficiary.   In these cases the credit worthiness of the issuer stands in place of the credit worthiness of the buyer – giving the supplier greater comfort that he will be paid.   ISSUERS FOR USANCE LC Calls for limits and restrictions. Please ask for each bank restrictions and line limits: BANCO Micro Capital Acumen Bank United Trust Bank UOB Global Capital Finance PROCEDURE Issuance Procedure: We need the following documents/ information for finalising the draft –   Filled in application form Verbiage required in the instrument for SBLC & BG / Pro-Forma Invoice for DLC Trade license of your company Share Holders List Passport copy of main applicant Last Three years audited balance sheet Last Six months latest bank statements Step-wise After acquiring all the pertinent documents and information, we will select the issuing bank or financial institution and provide the draft for your review. Upon receiving the draft of the instrument, you must thoroughly review it with all concerned parties. Should there be any amendment, we can revise it accordingly subject to issuer bank’s policy. Once the draft is approved, send us a copy of the draft with signature and approval stamp. We will raise the invoice for the agreed charges and you will make the payment against the invoice. As soon as we receive the payment for the invoice, the issuer will issue and relay the instrument after documentation is completed. Simultaneously, we will send you the issued copy through email for your reference and record.