Letter of Credit

For the Importer

RHB Bank's Letter of Credit allows you to make payment only upon presentation of compliant documents by your supplier, documents you have agreed with your supplier at the beginning. The same documents spell out the terms and conditions you have agreed with your supplier. Thus, you are assured that your interests are taken care of in the process purchasing goods. The Letter of Credit also allows you to take control of your payment terms and establish your credit worthiness as a buyer.

Benefits

• Minimizes the risks of non-delivery or late shipment as the Letter of Credit assures your supplier of payment
• Ensures your goods are delivered within the agreed terms and conditions
• Improves your credibility as a purchaser
• Allows access to financing options through our comprehensive range of import financing products
• Governed by International Chamber of Commerce rules
• Can be issued to suppliers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail.

For the Exporter

Letter of Credit provides the exporter with assurance that payment will be received if the terms and conditions of the Letter of Credit are met. Upon receipt of the Letter of Credit, the exporter will ship the goods in accordance with the terms and conditions of the Letter of Credit and present documents to reflect compliance. Documents presented will then be checked for compliance and payment is guaranteed by the buyer's bank. Thus the exporter can prepare for shipment or even source materials required to manufacture the goods for shipment upon receipt of the Letter of Credit.

Benefits

• Reduces the risk of non-payment by the buyer as payment is guaranteed by a bank
• Reduces the risk of non-payment by the buyer's bank when your documents are checked by a bank
• Governed by International Chamber of Commerce rules
• Allows access to financing options through our comprehensive range of export financing products
• Can be received from buyers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail