Documentary Credit Issuance for a Nigerian Buyer to Import Frozen Fish
Nigeria is the 4th largest fish importer in the world. Frozen Fish varieties such as mackerel, shawa, horse mackerel, etc. are always in demand in Nigeria. Knowing the demand for frozen fish, a Nigerian trader decided to import fish from Chile. They have a number of orders from the local market to supply different types of frozen fish. The fish trader wants to utilize this opportunity to generate a handsome profit. To support the fish importer, we, the Letter of Credit providers issued Documentary Credit from our bank account. The DLC MT700 was provided on their behalf and in favor of the Chile exporter.
Why the Buyer Required Documentary Credit?
Since there is a growing demand for Frozen fish, the buyer decided to make some trade by importing fish from abroad. After searching for a reliable fish supplier, they found a seller from Chile. However, the problem was the buyer did not have enough cash funds for fish import. After discussion with the seller, they jointly agreed on a Letter of Credit as a payment term.
A letter of credit is a form of payment that can be used in international trade. This kind of credit is issued by a bank, in favor of the seller so, that they will receive payment for goods shipped to the buyer.
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Buyer needs to avail Documentary Credit
To open Letters of Credit on their behalf, the buyer decided to visit their bank with the LC request. But, due to the strict banking norms, the buyer faced some issues in opening Import LC. So, with the help of a local trade finance expert in Nigeria, the buyer got in touch with us. They send their trade deal documents and request us to open a Letter of Credit on their behalf. Also, they ask for a meeting with us to know more about our DLC issuance process.
How the Buyer Got Documentary Credit From Us?
We, the Letter of Credit Providers in Dubai set up a ZOOM meeting with the client. In that, we explained our services in a very precise way. Then, the client came to our office in Dubai to sign the service agreement. Also, they paid the admin charges instantly. After the receipt of admin charges, we began work on their DLC request with our bank. After which, we have given them the DLC MT700 draft for their review within a day. The client was very happy with our quick services. The client reviewed the DLC draft. Moreover, as he was in Dubai, he visited our office to pay the DLC issuance fee. Also, he provided all the related documents for their fish deal. Soon, we forwarded all the details to our bank. Likewise, we asked them to issue the Import LC from our bank account on behalf of the buyer.
Outcome!
The bank issued the DLC via Swift MT700 to the supplier’s bank on the same day. With the issued Import LC, the frozen fish deal between the Nigerian buyer and the seller concluded well. If you’re looking for a Letter of Credit to support your imports, then contact us at any time. We, the LC Provider in Dubai can extend our own credit lines available with Good Repute Banks for you. Unlike banks, we don’t require a cash margin from our clients. Because we utilize our own bank facilities for your trade deals.
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