Letter of Credit
Letter of Credit
Securely receive your goods before you (agree to) Pay.
Letter of Credit from Riyad Bank facilitates your purchase from your suppliers (locally and internationally) at better credit terms. Import Letter of Credit is a commitment given by the Issuing Bank to pay the Beneficiary on presentation of complying documents. The Import Letter of Credit sets out the documents to be provided and the conditions to be met. Riyad Bank’s Letter of Credit is an agreement, promising to pay for the purchases/imports on your behalf against the submission of satisfactory documents and the meeting of specific terms by the supplier.
A Letter of Credit will give suppliers the required security for finance under the terms agreed, meaning you can delay the payment for goods until after they are shipped and compliant evidence is provided by the seller.
Riyad Bank can also offer to issue a Guarantee to the Shipping companies that allow you to take delivery of the goods at destination ports supplied against our Letter of Credit, for which the documents have not yet been submitted to us.
Letter of Credit from Riyad Bank facilitates your purchase from your suppliers (locally and internationally) at better credit terms. Import Letter of Credit is a commitment given by the Issuing Bank to pay the Beneficiary on presentation of complying documents. The Import Letter of Credit sets out the documents to be provided and the conditions to be met. Riyad Bank’s Letter of Credit is an agreement, promising to pay for the purchases/imports on your behalf against the submission of satisfactory documents and the meeting of specific terms by the supplier.
A Letter of Credit will give suppliers the required security for finance under the terms agreed, meaning you can delay the payment for goods until after they are shipped and compliant evidence is provided by the seller.
Riyad Bank can also offer to issue a Guarantee to the Shipping companies that allow you to take delivery of the goods at destination ports supplied against our Letter of Credit, for which the documents have not yet been submitted to us.
Benefits:
- Payment for goods against documents stipulated in the LC.
- Possible to avail supplier’s credit by issuing deferred LCs.
- Option to avail LC Refinancing, if the limits are available with Riyad Bank.
- Riyad Bank LCs are widely accepted worldwide making it easier for the exporter to avail pre or post shipment finance from their Bank
- You are more likely to receive timely delivery of goods because of the delivery timeline stipulated within the Letter of Credit
- Possible to enter deals with new suppliers at competitive terms