For Noble Civilization

Layanan 24 jam

Business Banking

UPAS Letter of Credit Issuance

Definition:

Payment guarantee based on the documents provided and in accordance with the terms and condition of  L/C, and the Sharia principle of wa’ad, wakalah bil ujrah and qardh

Requirements

  • Current account or financing account holder
  • Filling in L/C application form and L/C agreement
  • Adequate collateral
  • Documents pursuant to the requirements and L/C conditions
  • UPAS L/C is subject to UCP 600

Benefits

  • Payment due only upon received delivery of goods as proved by  the shipping document presentation
  • Secured goods delivery
  • Using general currencies
  • Helpful for flexible cash flow management
  • Double guarantee of payment (Payment guarantee from the issuing bank and financing bank)
  • Flexible collateral (cash collateral, financing facility, counter standby or counter guarantee)
  • Very competitive Ujroh (fee)
  • Customer payment on usance to the bank while the bank pays at sight to the supplier
  • Payment for goods  or services


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