Product Name

L/C issuance

Description

L/C issuance services are provided by Bank of China Limited Macau Branch. Per the importer’s application, the L/C is a payment undertaken by BOC Macau to the exporter. BOC Macau will fulfill its payment obligation when the terms stipulated in the L/C have been met.

Features

1. Improve negotiating status - issuing of letter of credit means that the importer provides the exporter with conditional payment commitment of the bank, a bank’s credit, in addition to its commercial credit. It improves credit and negotiating status of the importer, so may be able to negotiate for a low purchase price and better terms;

2. Ensure goods – ensure to the extent that documents evidenced that the goods supplied are the goods ordered;

3. Reduce capital occupied - if issuing an letter of credit upon given credit facility, importer need not spend self-owned capital in the stages of issuing the letter of credit in the issuing bank, exporter’s preparation of goods, and delivery.

Target Customers

1. Importer and exporter wish to promote the level of trade credit on each other's business activities;

2. The imported commodity is within a seller's market and the exporter insists on settlement with L/Cs;

3. Both importer and exporter want to select trade finance to improve liquidity.