We at NIC Bank Ltd strive to be leaders in trade finance backed by our uniquely competent trade and corporate banking experts, wide correspondent banking network, a unique ability to handle your trade risk management.
We offer a competitive funding costs and an experienced team to help your business meet with success in each transaction. We can also help clients leverage non-traditional collateral for use to access liquidity. We customize our products and services to meet our clients’ specific account management, payments, collections and liquidity management requirements.
This is an undertaking by NIC Bank to pay the beneficiary a stated sum should the third party fail to perform.
1. Import Letters Of Credit
This is written undertaking by NIC Bank at the request of its customer typically the applicant, in which the NIC Bank obligates itself to pay a supplier (beneficially) up to a stated amount within a prescribed time frame, upon presentation of documents that conform to ALL the terms and conditions requested by the applicant. This provides a secure method of payment in international trade and that the buyer is able to get a period of credit before having to pay for the imports.
2. Export Letters Of Credit
Advising of a letter of credit issued by the importer’s bank in favor of our client (exporter) locally at the request of its customer (the buyer) in favor of the seller where the issuing bank undertakes to pay. Thus, we guarantee the exporter payments so long as shipment is made on terms and conditions of the letter of credit.
This is a short-term trade finance product with a maximum tenor of 90 days or less and entails the purchasing by the bank, invoices or promissory notes from a supplier’s selected customers. The bank usually does the discounting with recourse to the supplier.
Upon agreeing with the bank on your customers whose invoices or promissory notes you wish to discount and subject to overall liability.
This facility enables NIC Bank clients to enjoy additional credit to that provided by the exporter through the terms of the letter of credit. This facility can be used by importers to pay the letter of credit bills as they fall due instead of debiting the current account. It is also ideal to use when a client account is not in credit balance as the fees charged are lower that the overdraft.