The import of crude sunflower oil has been a thriving business in India. People in India mostly use sunflower oil as the ingredient almost for all Cuisines/dishes. This increases the demand for sunflower crude oil. Even though Malaysia and Indonesia are also the biggest sources; when it comes to sunflower oil imports in India. Ukraine stands as the top exporter by boasting a solid share of approx. 96% of India’s total import of oil in the last five years. If you’re looking to import sunflower oil from Ukraine; then make use of DLC payment to secure your trade deal.
Continue reading to know our recent success in assisting an Indian buyer to import sunflower crude oil from Ukraine using Letter of Credit – DLC Payment.
The client is running their own sunflower oil refinery in India. Their business is to import sunflower crude oil from overseas suppliers, then refine it to make it as edible oil and supply it to the local market. Since the demand for sunflower oil is at its peak in India, the client decided to expand their business by importing 50,000 MT of Crude Sunflower Oil from Ukraine.
The client was well aware of the COVID-19 restrictions and other issues which cause delays in the shipment of goods. So, he didn’t want to pay the supplier in advance by blocking his running capital. On the other hand, the supplier was not ready to ship the goods; without getting a guarantee that the buyer will make the payment for the supplied goods without any default. Hence, both the seller and buyer discussed; and, mutually agreed to use DLC, as their payment term to secure their trade deal.
The issue in Availing DLC Payment
Since the client required LC MT700 for their import deal, they contacted their bank with their request. But since they have already utilized their credit lines; the bank demanded more cash margin to issue the MT700. But the client didn’t want to block their working capital for this trade deal; so they searched for an LC Providers and finally found us (BWT).
Our Solution in Providing DLC Payment
The client read the Letter of Credit section under our website and submitted their LC request to us. After 2 to 3 email conversations, they visited our office to sign the service agreement; and paid the required charges. We, the LC Providers in Dubai extended our bank facilities available in European Banks to issue LC at Sight at ZERO Collateral. Accordingly, we issued LC in favor of the client’s supplier in Ukraine; which allowed the client to proceed with the importation of sunflower crude oil.
The Client Success in Using DLC Payment
The supplier received the LC from our rated Bank Account in just 2 days. With the issued LC, the supplier is now about to ship the required crude sun flower oil via sea freight. The Indian buyer felt satisfied with the service they received from us. With the note of thanks, they have written to us stating; “Thank you for your timely help which you did for us. Since we have utilized our bank facilities, we have been left with no other option; to get the Letter of Credit issued. But you people did a great help for us by extending your trade finance support! Thank you, guys!”
Are you going to conclude your new trade deal using DLC Payment terms? Contact us today!
Get DLC at Sight for your Import Deal,