Funds accruing from this facility will be released direct to the supplier/seller (The party providing goods to our customer). The Bank has recourse to the client in case of non-payment.
A written irrevocable undertaking issued by the bank to pay to the beneficiary a specific sum of money on demand in the event that its customer (applicant) has not fulfilled his contractual obligations, within the validity of the guarantee
Letters of Credit
A Letter of Credit is an undertaking issued by a bank (Issuing Bank) for the account of the buyer (the applicant) to pay the beneficiary (the seller), provided that the terms of the Letter of Credit are complied with.
Giving value to the seller for services/goods sold on credit terms (e.g. 60 days, 90 days…) before maturity date subject to confirmation of the acceptance by drawee through their bankers.
Facility offered by the Bank to the customer to purchase inputs for the production process of goods which are for onward sale/export.
A loan facility given by the bank to an importer (customer) to settle bills of exchange that have matured and the importer (customer) has not mobilized adequate resources to settle the same.
Foreign Demand Drafts
It is a service for facilitating payments for clients who require guarantee for making payments abroad.