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Import Documentary Credit (Import Letter of Credit)

Why is this payment method right for you?

You may be entering a new relationship with a supplier or you may be dealing with a supplier located in a market which you perceive as risky.

An import documentary credit:

  • Ensures a supplier has met your terms and conditions before you pay them.
  • Strengthens your negotiating position by offering a guaranteed payment.
  • Can be used to improve cash flow

Other Benefits

  • Protects you and your supplier's interests.
  • Can be used to increase the credit period a supplier is willing to give
  • Documentary Credits issued by SABB, an HSBC Group member, will be widely accepted as payment assurance by suppliers and their banks
  • Can be used in place of deposits and advances financed by import loans, overdrafts or your own cash reserves

How Documentary Credits Work

A Documentary Credit is an undertaking by a bank to pay a supplier for goods or services within a prescribed time limit as long as clearly defined terms and conditions have been met.

 

Other Useful Information and Services

  • Murabaha Documentary Credit
  • Musharaka Documentary Credit      
  • SABB Amanah Trade Solutions
  • Export Services
  • Trade Finance

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