The Fabric and Textile industry is most in-demand in UAE, accounting for around 49.7%, as per the recent statistics. A wholesaler, manufacturer, and distributor of apparel in UAE had a requirement to purchase Fabric Weaving Machines; to meet the emerging demands of garments in UAE. They have decided to proceed with this deal by choosing SBLC, MT760 as a payment term.
The Client’s Requirement to Avail SBLC
A UAE based textile trading factory decided to increase its annual turnover by expanding its operation. So, they decided to import weaving machines from reliable sellers; and found the one in Germany. Since the buyer wanted to conclude this deal with MT760, they conveyed the same to the supplier. The Seller found that the UAE trader to be the genuine one, so they agreed to use Standby LC. So, the UAE buyer required MT760 to import the complete fabric weaving units.
The Client’s Challenge to Avail SBLC
The UAE trader contacted their bank to avail SBLC on behalf of their company. But they asked the buyer to pay a 100% cash margin to issue the required MT760. Being a businessman, they were not having such 100% funds available right away to provide as the margin of the required Standby LC. So, they looked out for other options. They discussed with their financial team to find a solution to avail MT760. Each of them came up with different solutions; whereas one of their staff recommended the Boss to get help from trade finance providers. So, the trader started searching for SBLC providers in Dubai. And they found us from Google Search Results and contacted us.
The Client Received Standby LC from Us
The Client found our office address from Google and visited our office directly with a copy of their Sales & Purchase Agreement. We studied their trade deal and approved their request. Instantly, the client signed the agreement with us and paid the admin charges. We then started work on their request and structured their Standby LC as per their deal. Once we did the MT760 draft, we sent it to the client for their approval. Again, the client visited our office to acknowledge their approval on the draft and paid the issuance fee. And then, we contacted our bank with the MT760 request. Then, we instructed our bank to issue the Standby LC in favor of the German supplier. And so, the bank issued the Standby Letter of Credit to the seller’s bank via authenticated Swift MT760.
Once the seller received the MT760 in their bank account, they shipped the weaving machines via sea freight. The buyer received the machines from the port; and done the set up in their factory. And then, they started manufacturing more quantity of apparel. Also, they distribute it to the local market to be the N0.1 textile trading company in Dubai.
The UAE trader thanked us for our on time help in the issuance of SBLC. And also, they stated that BWT will the point of contact for their future trade finance requirements. This is the way we helped the UAE trader to conclude their Fabric Weaving Machinery deal successfully!
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