FAQs
Confirmation of an LC is normally requested by the Exporter to guarantee payment under the LC (subject to compliance with LC terms) when the LC is issued from a country that is politically unstable or if the credit standing of the issuing bank is relatively weak. Under these circumstances, the LC opening Bank would have an arrangement with a Bank in a Third country and is a reputable Bank as well. To enable screen reader support as well.
Consequently, when an LC is advised through KBZ Bank, the exporter can submit documents that are strictly under LC terms. KBZ Bank will then claim certify that the documents are as per LC terms and claim reimbursement from the Confirming Bank.
In general, Export LC advising fee, bill handling fee and other fees outside of the LC Issuing country are borne by the Exporter
In general, Documents required are listed on the Export LC. The usual documents requested are the following
1.Commercial Invoice (Proof of Value),
2.Bill of Lading (Proof of Shipment),
3.Packing List (Proof of Packing)
4.Certificate of Origin (Proof of Origin),
5.Certificate of inspection and insurance policy (CIF term)
The customer may approach the KBZ Bank trade sales team at HO, they will introduce an appropriate Relationship Manager for further guidance/assistance in setting up a credit facility.
A sight LC is payment to be made immediately to the beneficiary upon presentation of the compliant documents.
A usance LC specifies when payment is to be made at a future date and upon presentation of the Documents Required.
In general, a letter of credit is issued within two business days provided the application form is submitted before the cut off time.
In general, applications submitted by noon time usually are transacted on the same day. If the LC application requires clarifications from the Customer, this could potentially take an additional day. If submission is after 2:00PM, that transaction will be executed the next day.
You may contact our Trade Sales representative at the HO, they will connect you with a proper RM at HO for discussion.
There is no fee for the BG discharge process.
Original Letter of Guarantee issued by the Bank.
Beneficiary’s discharge order letter
Company’s letter requesting BG discharge (with company letter head)
Yes, if the Beneficiary of the Bank Guarantee issues a discharge and returns the original letter of Guarantee.
In general, an application submitted by 12:00 noon, it will be transacted on the same day If a complicated case, it will be the next day; for cases submitted after 12:00PM, that deal will be transacted the next day as well.
Corporate Buyer needs to have pre-approved credit facility before applying for Invoice Financing-Purchase transaction.
Corporate Supplier needs to apply credit facility for the Invoice Financing-Sale.
It is not mandatory for supplier to open an account at KBZ Bank in Invoice Financing-Purchase transaction.
The company may contact the Corporate Banking Team at the HO; an RM will be appropriately assigned for further discussion.