The Indian Trader required BCL Letter – Letter of Comfort issued from rated banks; to import Petroleum Products from Saudi Arabia. Bronze Wing Trading helped the Indian trader with the Letter of Comfort issued from the European Bank on their company’s behalf.
Problem: The Indian Trader Required BCL Letter
After the economic recession, all market players decided to act in a smart way to earn more profit. Accordingly, the Indian trader who owns the petrochemical factory decided to expand their business; by increasing the production of Paraffin Waxes and other by-products in their units. For this, they required petroleum products; so they decided to purchase it from a reliable supplier in Saudi Arabia. The supplier had the required stock; and also, they were ready for the shipment.
Since the world economy was under pressure; the Saudi Arabian Supplier demanded BCL MT799 from the buyer; to verify their fiscal strength. The trader didn’t want to block their own funds at their bank to avail BCL; so, they decided to get help from private trade finance providers.
Challenge: To Find Trade Finance Providers to Avail BCL Letter
After making the decision to avail BCL Letter, they started searching for the ways to avail BCL MT799; without blocking their funds. In one of the Facebook Group; they come across with our post saying, “Avail Trade Finance without Blocking Your Funds”. They visited our Website; and found that they can get BCL Bank from us without collateral. With a ray of hope, they had written an email to us stating their requirement.
Solution: How We Issued Comfort Letter from Bank
Once we received the official request from the Client, we called them via phone to discuss their trade deal. We explained to them about our Process and the fee we charge. Also, we assured them that we don’t pledge or demand any kind of cash margin. They agreed to our terms; and then, they signed the service agreement with us and paid the admin fee. Further, we blocked our bank limit to provide the BCL Bank from our account on their behalf. Accordingly, we structured their trade deal; and we sent the BCL draft for the client’s approval. As the things stated in the draft were crystal clear, the client approved the draft and paid the issuance fee. And then, we instructed our bank to issue the BCL Bank on behalf of Indian trader to the Supplier’s account via SWIFT MT799.
Outcome: The Seller Sent POP to the Buyer
After receiving the MT799 from the buyer, the seller assured of the financial strength of the buyer. So, they sent the POP (Proof of Products) to the buyer’s bank. Once they received the POP, the buyer got assured; that the seller has the petroleum product quantity available in their stock. And then, they both signed the contract; and proceed further with their trade deal.
Once the deal concluded, the Indian trader wrote an email to us; to convey their thanks for helping them by providing the BCL Letter. This is how we helped the Indian trader to conclude their petroleum product deal without blocking their cash capital.
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