Letters of credit have appeared almost simultaneously with banks. Their performance is based on the fact that the solvency of an unknown buyer is replaced with the solvency of a well-known bank. SUISSE BANK LTD often has to put itself in place of its clients and give certain liabilities that the payment will be made subject to performance of certain conditions. Such mechanism is called a letter of credit or a documentary letter of credit. Notwithstanding that there are various types of the letters of credit most of people are, as a rule, familiar with the import or export letter of credit terms. Such terms are used when SUISSE BANK LTD represents a client that is an importer or exporter.
HOW DOES IT WORK?
When the Buyer applies for the import letter of credit it specifies the exporter, amount, currency, time, commodity type as well as other payment terms. Then the exporter in its country is informed that a letter of credit has been opened in its name, in this manner it becomes an export letter of credit beneficiary. Then the exporter ships the goods to the importer and presents necessary documents to the bank. The bank checks the documents for their correspondence to the letter of credit and makes payment to the exporter. Eventually the bank requests settlement from the importer.
Please fill out the online writable application. Send us the copy of the application with all the required documents first by email and courier the originals to our postal address:
Emaar Square, Downtown Burj Khalifa
United Arab Emirates
Phone: +971 4313 2552
Fax: +971 4313 2433
Should you have any queries or concerns, please feel free to contact us.