DOCUMENTARY CREDIT

To enable you pay for your purchases when exporting or importing, MCB Credit & Securities Limited offers a documentary credit.

Characteristics  :

Documentary credits meet your needs by:

• Enabling the exporter obtain a bank commitment from the importer's bank, which differs from the effective payment by the importer (with the bank undertaking to pay if the importer has difficulties in paying).
• The bank gives its assurance to the importer that the bank guarantee shall only be released if the seller can justify that he has properly executed his contractual obligations.

Which companies are concerned?

Sole Proprietorship Companies, Common Interest Groups or Economic Interest Groups etc.

Duration :

The term principally depends on the timeframe within which the foreign seller needs to present the relevant documents to the bank issuing the documentary credit. A deadline for the presentation of such documents is agreed on and if the deadline is breached payment is no longer possible.

How to obtain this facility

 

	Advantages Guarantees the exporter that his invoice shall be settled Guarantees the importer on the effective existence and quality of goods purchased Incidentally, acts as a financing scheme.