Hi LC Experts,
I am going to open an LC for the import of machine worth EURO 3,05,000.oo .
10% of the amount has been paid in advance and i have to pay rest of the sum through irrevocable LC. 85% of which at sight(DP) and 5 % after 70 days from S.O.B.
My questions are: 1> " What documents should i need to deposite to bankers to open The LC?
2> How much amount should i deposite to bankers on 100% margin.would that be 85% or entire 90%?
Have you secured SBLC Pprovider?Do you need one?
can anyone tell me about securing standby letter of credit,and its benefits too?
A guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SLOC will perform brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then send notification to the bank of the party requesting the letter of credit (typically a seller or creditor).
secured---it may be confirmed also.
N K Kalra, India [email protected]
1. I THINK THAT THE DOCS WILL BE REUQIRED BY YOUR BANKER AS THE SAME AS WHICH UNDER THE NORMAL LC .
2.90% AMOUNT SHOULD BE DEPOSTE TO YR BANKER DUE TO THE 5% AND THE 85% WILL BE FINAL PAYMENT UNDER THE LC.(IF S.O.B MEANS SHIPPING ON BOARD)