As a part of expanding their business, a Chinese based machine rental firm decided to purchase heavy machinery from a German Based supplier. For this, the supplier required Bank Comfort Letter to show Proof of Products. So, to get BCL MT799 on their behalf; they decided to get help from BWT, the trade finance provider in Dubai.
The Problem: Required BCL MT799
A China-based company decided to start a new firm that mainly deals with heavy equipment rental. So, as a one-time investment, the firm decided to purchase heavy equipment for road construction. And it includes Excavators, Loaders, Bulldozers, JCB Wheel Loaders, Forklifts, and Tunnel Boring Machines. For this, they announced a bid to get the best price from genuine suppliers. The buyer received many quotes from many suppliers. A German supplier who supplies heavy equipment also participated in this bidding contest. And they won the bid, as they provided a very reasonable quote in their bid.
The supplier was ready to supply the required equipment, as per the agreed contract. But, they asked the Chinese firm to provide BCL MT799 to determine their financial strength for purchasing different types of equipment. The firm agreed to their terms and started the process to avail Letter of Comfort on behalf of their new startup firm.
The Challenge: How to Avail BCL MT799
First, the Chinese trader asked their bank to issue BCL Bank on their behalf. Even though the trader has a good repute in the market, the bank denied their request, as they requested BCL on behalf of their new startup. So, they looked out for other options to arrange MT799.
They discussed with their business partners & colleagues to find a solution to their problem. By luck, one of their colleagues named Lian Kang (One of Our Happy Client from China) referred BWT. Also, the past client explained our process to them. The buyer admired by the word of mouth referral and contacted us with their Letter of Comfort request.
The Solution: BWT Provided Letter of Comfort
The client submitted their request to us via email and we had a good discussion on phone about their deal. Also, they booked an appointment to meet us at our Dubai office. We scheduled the meeting accordingly; then, they visited our office to discuss their trade deal in-person. Our CEO welcomed the client and they both had a fruitful discussion regarding their BCL request.
The client felt well satisfied after the meeting. So, on the same day, they signed a service agreement with us and paid the admin charges. Also, they provided all the needed documents. We informed them that we would conclude the deal within 48 working hours.
Instantly, we started working on their trade deal and sent the BCL draft for the client’s review. Further, they approved the MT799 draft and paid the issuance fee. And then, we processed their request with our bank and issued the BCL via swift MT799. This BCL proved the German supplier that the Chinese trader has the financial means to purchase heavy equipment.
Once the supplier received the BCL at their bank account, they sent the POP (Proof of Product) to the buyer’s bank. After receiving the POP, the buyer again contacted us for the issuance of LC MT700; as they were satisfied with their BCL transaction done by us.
The Chinese trader became a valued client of BWT. And now, whatever the trade finance needs they come across; they would contact us instantly to get our support. This is how we helped the Chinese trader to conclude their heavy equipment purchase deal.
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