Letters of Credit

Overview

Unity Bank issues import letters of credit on behalf of customers to the beneficiaries anywhere in the world by highly reputed correspondent banks adding their confirmation. Our correspondent banks are well positioned in strategic business locations all over the globe.

Features

• Approved trade finance facility is required if there is no cash collateral provided by importer
• Advance payment of up to 15% subject to documentation requirement - advance payment guarantee is required from a first class bank in the country.
• Payment is made after presentation of compliant documents by the exporter to the bank nominated in the Letter of credit
• LC is established under the Uniform Customs and Practice, UCP Article/Publication No. 600(latest version)

Product Benefits

• Facilitates importation of goods and services at a reduced costs
• Protection against loss of fund
• It reduces the risk of non-performance of the exporter. If goods are not shipped and documents are not presented, exporter will not get paid
• Shipment date is strictly adhered to by the exporter except with permission from the importer
• Foreign exchange can be bought from the official market when compliant documents and terms of the LC are adhered to
• Reduces smuggling

Requirements

• Ownership of current Account (company)
• Meeting various regulations in the country from regulatory authorities e.g. NAFDAC,SON,CBN