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Letters of Credit

Import Letters of Credit

Your supplier(Both Local or overseas) may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction/ line of credit extended to your business. Our network of correspondent banks enables us issue Letters of Credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Due to sensitivity of trade transactions, we advice the beneficiary's bankers within 24 hours of our receipt of your application subject to fulfilment of all our requirements .

Revolving Letters of Credit

Revolving letters of credit are useful for buyers and sellers who have a long standing trading relationship. They involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed. Depending on your needs, FCB will undertake to reinstate these instruments automatically and without the requirement of any further amendment from you. The number of times within which this can take place will be agreed upon and specified in the documentary credit.

Standby Letters of Credit

Whereas payments under regular letters of credit are triggered by the performance of the exporter under a specified trade contract, payments under Standby letters of credit are triggered by the default of the importer under a specific trade contract. Standby Letters of credit are irrevocable and payable on demand.

Upon your request as an importer, FCB can provide this form of conditional undertaking on your behalf to the beneficiary. Should you fail to make settlement, we will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit.

Import Letters of Credit Refinancing

This is usually applicable in instances where certain unfavourable market conditions exist on the due payment date and for one reason or another, the applicant is not willing to make settlement. We can arrange to make settlement of both sight and usance import letters of credit on your behalf and refinance locally up to 180 days after payment date depending on your requirements. This provides you with flexibility to manage your cash-flows.

Export Letters of Credit

Export Letters of Credit are advised within 24 hours of receipt. Upon request our confirmation may also be added. Confirmation eliminates the risk of default by the beneficiary to the bank and can facilitate access to a wide variety of finance solutions both before and after actual shipment has taken place.

Transferable Letters of Credit

These are letters of credit that can be transferred from the first beneficiary to one or more additional beneficiaries by the transferring bank. We are currently actively involved in issuing and advising transferable letters of credit on behalf of and in favour of our customers. Our trade finance specialists are available to further discuss the implications, terms and conditions under this type of credit.