Import Letter of Credit Signs a New Agreement to Issue Payment Guarantee Letter to Buyer
Import Letter of Credit proudly announces the new transaction to issue a payment guarantee letter to the buyer; to execute the export of green coffee beans.
A Buyer of coffee beans from Korea and a seller from Brazil; made an agreement for the supply of 60000MT of coffee beans in 50Kg/bag. Further, they both mutually agreed; to ship the consignment on the basis of 20000MT per month. Before starting the shipment of goods, the seller asked the buyer to provide advance payments. Also, to secure the advance payment, the buyer asked the seller to provide an advance payment bond. With this BG request, the seller contacted us. And now we are in the process to issue a Payment Bond to the buyer.
Importance of Payment Guarantee
One of the trade finance expert in BWT stated, “When it comes to overseas trading, buyers and sellers faces trust issues; as they are unknown to each other. In such a case, they require guarantees from a bank; stating that both parties will meet the commitment; as per the agreed contract. And this BG transaction also falls under the same category. As the seller asked for advance payments from the buyer; the buyer demanded BG MT760 to secure their payments.”
He also stated, “Since the seller didn’t have hard cash to block in their bank account; their bank declined their BG request. As we are here to support them; by providing the required guarantees without blocking their cash funds; the seller contacted us. We have started working on this deal. Also, we will provide the required bond as soon as we receive its charges.”
When discussing the BG transaction with the seller via ZOOM, they provided all the required info and ended the meeting by adding, “BWT is doing a great job by supporting traders like us. For us, this Coffee Beans Export deal is really important; as this is the first deal which we are going to conclude after COVID-19. So, the support which we are receiving from BWT right now is unforgettable. Also, we will be always thankful to them.”
Being International Bank Guarantee Providers in Dubai, we have more expertise in structuring this kind of BGs and providing Payment Guarantee Letter.
For all your BG related queries, you can contact us at any time!
Avail Bank Guarantees to Get Advance Payments from Buyers
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