1) Import L/C
The import L/C is a payment undertaking by Bank of Kunlun to the foreign importer. Bank of Kunlun will fulfill its payment obligation when the terms stipulated in the L/C are complied with.
Functions:
a) Bank of Kunlun may satisfy your various letter of credit needs, common letter of credit: payment L/C, acceptance L/C, postpone payment L/C, negotiation L/C; specific letter of credit: negotiable L/C, back to back L/C, recurring L/C and etc;
b) Relief for the margin based on your credit status when issuing the L/C;
c) If you pay full deposit before issuing letter of credit in Bank of Kunlun, you can get high efficiency service for opening letter of credit business;
d) Bank of Kunlun also provides with other high quality service such as amendment of L/C, documents review, bill acceptance and payment;
e) Bank of Kunlun also provides with other subsequent services such as shipping guarantee, endorsement of bill of lading, trust receipt loans and refinancing;
f) Bank of Kunlun provides with foreign exchange business such as spot/forward foreign exchange, spot/forward foreign exchange trading to avoid exchange rate risk;
Product Advantage:
1. Credit enhancement: opening L/C provides the exporter with a conditional payment commitment on top of the commercial credit, giving you better credit by which you may win favorable price terms for your goods;
2. Warranty of goods: commercial credit is enhanced by bank credit through the product. The trade itself will be warranted by the bank, and the ownership of the cargo, shipping date and quality of cargos are well controlled under the documents and terms;
3. Reduction of fund occupation - for the importer who uses the L/C with credit limits, the fund occupation will be minimized during the period between the L/C issuance and payment.
Business Process:
1. Documents needed for issuing L/C: application for issuance of L/C, Trading agreement, approval documentation for import (if applicable), record of import payment (if applicable) and etc;
2. If it is the initial time for you to issue L/C, other basic documents like business license are also needed. If you apply for reduction of warranty or apply for credit line, financial and business operating information is also needed;
3. According to your credit rate or the type of L/C you apply for, you may need “Trust receipt” as well;
4. When the L/C is opened, Bank of Kunlun will provide you with professional document review service when the receipt is got;
5. You can get full set of documentations from Bank of Kunlun for further process.
2) Domestic L/C
Domestic letter of credit is a payment promise that the issued in accordance with the applicant's application by the issuing bank. Domestic letter of credit is irrevocable, non-negotiable documentary credit.