Letter Of Credit-i (Murabaha)
For contracts secured, purchased of the contract goods are normally on cash basis or with a limited credit line and period granted by the suppliers. A Letter of Credit (LC) would always be used as a payment term for local and overseas purchase.
It can be challenging to secure a bank facility in the form of a Letter of Credit. Even if a company can secure a facility, the terms can be daunting as banks would require an upfront security deposit of up to 40% of the LC amount. For overdrafts or term loans, a sinking fund would be part of the terms and conditions which may take up the company’s remaining cash flow.
What You Need to Know
- FinansCap can issue Letter(s) of Credit to domestic and overseas suppliers.
- We facilitate supply contracts purchases.
- Zero sinking fund. No upfront deposits needed.
- Your contract(s) will act as the collateral, and as low as 1.5% fee will be charged per month during the LC validity period.
Being a Trade Finance specialist with over two decades of experience, we have served various domestic and international companies in different industries. We have the know-how to help manage your overseas and domestic trade purchases with your suppliers, including structuring back-to-back LC for your exports and imports needs. Our trade line solutions can be tailored to meet your specific needs. As your financier partner, we will work closely with you to meet specific financial goals or needs for your business.
Our rates are competitive with flexible terms, and initial approval process is fast.
How to Apply
Step 1
Step 2
Step 3
Step 4
Step 5
Step 1
Receive written confirmation (Letter of Offer, Letter of Award, signed contract) from the Government or GLCs on award of project.
Step 2
Identify supplier, who would then issue a Proforma Invoice.
Step 3
Prepare a signed copy of Bai’ Dayn Confirmation. The document should be signed for acknowledgment by the contract awarder.
Step 4
Compile the following documents and submit to FinansCap.
- Letter of Indemnity
- Original Letter of Offer (LO)
- Proforma Invoice
- Bai’ Dayn Confirmation – signed by a Government/GLCs officer
- FinansCap’s Letter of Credit application form
Step 5
Upon receiving the documents, FinansCap will issue the Letter of Credit to you within three working days*.
*Subject to completion of all documents submitted. Terms and conditions apply.
Let our team of experienced and dedicated finance specialists advise and provide you access to the best funding solutions for your business needs.
Fill out the form below now!