An Indonesian firm had gained a worthy contract for the supply of iron ore from their local buyers. During their search, they came across a seller of iron ore in Brazil. As the seller is well aware of the risks in global trade, as they demanded for an LC. Since the buyer & the seller were mutually agreed to opt LC MT700 as their payment term, they decided to get help from the Letter of Credit Provider to avail LC.
Problem: Need to Find Letter of Credit provider
Initially, the Indonesian Company contacted their Bank for availing LC MT700. But the Bank asked the buyer to provide 100% cash margin to open LC on their behalf. As the trader is running a small business, it was really difficult for them to arrange 100% cash margin. So, the bank rejected their LC request.
At the next step, they decided to get help from private sources to avail of LC MT700. So, they started searching for trade finance providers. They started searching Google, Trade Portals & Social Media Sites. After a long groundwork, they found BWT, the LC provider from one of the leading B2B trade portals.
Challenge: Letter of Credit Provider Arranged LC MT700
The Indonesian company studied our website and they found that we are direct providers of our trade finance facilities in the global market for many years. They also found that we help the traders to avail trade finance tools without obtaining any financial collateral from them.
Once they came across all these things, they saw sunshine in the dark. So, without any second thought, they decided to choose us to avail LC MT700 to conclude their deal. They filled out the online form and submitted their queries to us. And also, they sent a direct mail to us stating their trade deal along with the proforma invoice.
Our team reviewed the trade details and asked them to provide the related documents & needed info. We verified the documents and approved their LC request. And then, once they paid the fee, we work on to issue the LC MT700. The MT700 relayed to the seller’s bank within a day on behalf of their company.
Result: The Buyer Concluded the Iron Ore Deal
After receiving the MT700, the buyer filled with gratitude for the timely service offered by us. The Brazilian seller also quite impressed with our prompt services, once he received the LC. When the buyer received the commodity, he soon started selling to his principal buyers and made huge profits.
Don’t Have Enough Bank Facilities to Avail LC?