There are more global commerce opportunities than ever for companies like yours. But these deals are often financially complicated. First Bank Letters of Credit can help ensure the success of your international transactions. We issue several types of letters, which guarantee that a buyer's payment to a seller will be received on time and for the correct amount.
- Export Letters of Credit
- Transferable Letters of Credit
- Import Letters of Credit
- Bankers Acceptances
- Standby Letters of Credit
- Documentary Collections
Export Letters: First Bank provides an exporting client with fast and efficient processing of documents to facilitate the collection of your receivables. We handle the advising and/or the negotiation of the export letters of credit.
Transferable Letters: For an export letter of credit, First Bank is authorized to transfer the letter from a client (first beneficiary) to a second beneficiary. First Bank will advise the client (first beneficiary) on the best approach and execute the process.
Import Letters: First Bank provides an importing client with fast and efficient processing of import letters of credit to ensure there are no delays in the manufacturing and shipping of merchandise. We will notify a client as soon as a document is received, so the client does not have to pay any demurrage charges or experience any delays in picking up their merchandise.
Banker's Acceptances: First Bank will accept drafts drawn on First Bank in accordance with the letters of credit terms and will monitor maturity dates and notify a client as needed.
Standby Letters of Credit Transactions: Standby letters of credit include both financial risk or service performance. Depending on what kind of Standby Letter of Credit is required, the following documents could be presented: Letter of Credit template; Letter of Credit prepared by lawyers; Letter of Credit application; confirmation.
Confirmation: This shifts the risk from the issuing bank to the confirming bank. Usually confirmations are required when the beneficiaries are insurance companies or banks.
- Must be stated in the Standby Letter of Credit
- Our Letters of Credit are confirmed by one of our correspondent banks
- The applicant pays for the confirmation commission
Incoming and Outgoing Documentary Collections are done based on the mutual trust between the buyers and the sellers. We offer two Documentary Collections options:
- An incoming document payment is a documents against payment. First Bank will release the shipping documents against payment to a client.
- For a document against acceptance First Bank will release the shipping documents against the acceptance of the draft by the drawee (The Buyer/Our Client).
- For a documents against payment, First Bank will send the shipping documents against payment to the buyer’s correspondent bank, following a clients' instructions. Upon receipt of the incoming payment, First Bank will credit the client’s account and notify them.
- For a documents against acceptance, First Bank will send the shipping documents against the acceptance of the draft by the Drawee (Buyer) to the buyer’s correspondent bank, following the clients' instructions. At maturity of the draft and upon receipt of the incoming payment, First Bank will credit a client's account and notify them.
For More Information
If you wish to inquire about letters of credit, contact a First Bank representative.