The Import and Export Company in Florida got the offer to supply tractor tires to the buyers in Texas. So, they looked for genuine tractor tire suppliers, who could deliver the goods at a fair price. Luckily, the company found a tire supplier in China who demanded the Letter of Credit MT700 as payment terms. So, they decided to get MT700 from their bank or via a Letter of Credit providers.
Problem Faced: Need To Open MT700 to Conclude the Deal
In the first attempt, the trader decided to avail MT700 from their bank. So, the buyer stepped into the bank with a Letter of Credit request to avail MT700 in favor of the Chinese supplier. But, they asked for a cash margin and third party assurance against the issuance of LC at Sight. As per the financial condition of the US Company, their cash was involved in other running projects. This made them difficult to liquidate at the time of the deal.
They got upset that their deal would not conclude as all options were blocked. Also, they were not able to find any bank to favor them in a positive way. So, they left with no idea what to do the next.
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Challenges: How the US Trader Found BWT, the Letter of Credit Providers?
While discussing their current situation with one of their friends, they recommended contacting BWT. Further, he informed them about a B2B portal where BWT registered as a Letter of Credit Providers. And, this pulled the company out of the odd situation and served as a ‘Jackpot’ for the US Company.
The US Company visited our website and gone through all the information available on our website. Also, they watched the LC process videos and read the steps to apply LC at Sight. They found our process very easy. So, without any delay, they wrote an email to us on our official email id stating their trade finance requirements.
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Solution: BWT, Letter of Credit Providers Opens LC at Sight
Once we received their email, we acted in accordance. We carefully studied the trade deal & the proforma invoice sent by them. And we found that they met all our parameters, so we approved their request. At the next stage, we asked them to sign a service agreement and pay the charges.
The company signed the service agreement and paid the admin charges. So, we started work on their request. Further, we have forwarded the MT700 draft to the client for their review and approval.
The client approved the draft & paid the LC issuance fee charges. Also, they submitted the related documents to us. So, without further delay, we instructed our bank to open LC at Sight in favor of their seller.
And so, our prompt action in this regard really made the company to conclude their tire deal and to receive the shipment at the US port within the time limit.
The buyer felt very happy, as we offered them the best service to conclude their deal without blocking their working capital. As a note of thanks, the US trader conveyed that they will definitely use our services for all their future trade deals.
