Import Trade Finance (Letters of Credit)

A letter of credit (LC) is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.

Features

  • Establishment/ Extension (Per Quarter): 1% Min US$100 cash covered, 1.5% Min US$100 Non cash covered
  • Cancellation commission: $100.
  • Other Amendments: $50
  • Extension Period: $110
  • Advising: 0.5% Min $ 135
  • Confirmation: 0.5% Min $150
  • Document Handling: 0.5% Min $120
  • Discrepant Representation: $100
  • Negotiation: 0.1% min $ 130
  • Repayment: Contract performance/discharge

Benefits

  • Secure mode of payment for international transactions as it protects both the Importer and the Exporter

Requirements

  • Brief Business Profile
  • Credit Facility Application Letter
  • Audited Accounts for the last three years
  • Latest Management accounts if audit Accounts older than six months
  • Budget/Cash Flow projections for the duration of the facility as well as underlying assumptions
  • Aged Debtors and Creditors Analysis
  • Description of Property being pledged as collateral as well as approximate value
  • If to be secured through third party mortgage, attach consent documents for the use of the security
  • Bank Statements for the last 12 months if not a UBA customer
  • Brief Profiles of Directors and Top 4 Key Management Staff
  • Board Resolution to Borrow Proforma invoice indicating a trade agreement between the importer and the Exporter
  • Clients have to be suppliers of Service providers of one or more of the Bank’s approved Counter parties