Our Success in Issuing LC Payable at Sight On Behalf of South African Rice Dealer
A South African agro-food dealer with a huge database of local buyers engaged in buying and supplying various grain products – rice, wheat, pulses, spices, etc. South-African Buyer required LC Payable at Sight on behalf of their company to import IR64 Raw Rice from a reliable supplier. Read our success in assisting the rice buyer with their LC at Sight requirements.
The Rice Buyer Required LC Payable at Sight
Our Client, the agro-food trader in South Africa had a requirement to purchase 10,000 Metric Tons IR64 Raw Rice. Since the buyer required the min. quantity of 10000 MT of rice on the monthly basis, they searched for the rice stockist who can supply on the regular basis and at the best-discounted price. Via Alibaba portal, the buyer found a supplier from Pakistan, who was ready to supply 10,000 Metric Tons of rice on the monthly basis. Even though the seller met all the trade requirements, the buyer wanted to secure their rice import deal with the LC Payment term – Letter of Credit Payable at Sight.
The Bank Declined the Buyer’s DLC Request
To get LC Payable at Sight on behalf of their company, the buyer contacted their banker with a request for LC MT700. As they have used all the bank facilities, the bank turned down their DLC request. Some other banks were ready to provide the required MT700, but all demanded to provide 100% cash margin. Since the buyer didn’t want to block their funds before the shipment; they didn’t want to provide a cash margin.
While seeing YouTube videos to find out other available options to secure their rice deal, the South African buyer came across a YouTube video stating “No Cash Margin Required to Open DLC from European Banks”. He watched the video and contacted us via email.
The Buyer Availed the Required LC at Sight
The buyer had written a detailed email to us by stating the scope of their trade deal. After receiving the email; we asked them to send the proforma invoice of the rice deal from their seller in Pakistan. And then, our team did a study on their rice offer and approved the buyer’s request to arrange LC at Sight. After that, we have informed our working process to the client. Since they felt satisfied with the way we work; they signed the service agreement and also paid the service charges.
DLC at Sight Issuance from European Banks
After the receipt of service charges from the client; we started to structure their MT700 with our bank and sent the DLC draft for their review. Further, the Client verified and approved the MT700 draft. And then, they paid the LC charges and also provided the requested documents. After receiving all the needed info from the client; we acted instantly and instructed our bank to issue the required DLC at Sight. And further, our European Bank issued the required Letter of Credit directly to the seller’s bank account via SWIFT MT700.
The Supplier Started the Shipment of Rice in 50KG Bags
After receiving the Letter of Credit Payable at Sight; the supplier packed the IR64 Raw Rice in 50KG bags and started the shipment via Ocean freight. Once the goods arrived at the destination port, the buyer made the payment to receive the original shipping documents. The bank releases the payment to the supplier.
This is how the rice deal concluded successfully with the Issued LC Payable at Sight.
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