Letters of Credit Services
Letters of Credit
are designed to facilitate trade-enhancing relationships
with your suppliers through efficient document processing
and timely payment, while still protecting your rights.
Exporters conventionally stipulate Letters of Credit as
a mandatory requirement. Citibank opens, advises, amends
and pays Letters of Credit on behalf of thousands of importing
companies worldwide, enabling commercial trading transactions
to proceed swiftly and efficiently.
Import Collections are payment mechanisms, which are
less expensive than Letters of Credit, but provide more
security to the supplier than open account transactions.
Import Documentary Collections simplify the administration
of commercial trading transactions, and safeguard your
title to goods. They also boost trading relationships
by reassuring your counter party of due payment.
the Product Works
a Documentary Collection, the shipping documents are
sent to Citibank rather than directly to you, the
importer. Citibank acts as the collecting bank, accepting
the title documents from the exporter's remitting
bank and delivering them to the importer upon payment
(sight collections) or upon a promise to pay (acceptance
guarantees 24hr turnaround time on debit and credit of
Import Collection payments.
our global reach and network, Citibank helps corporates
manage their end-to-end flows and risks more efficiently.
This undertaking is similar to that of a Letter of Credit
and hence provides the same comfort to your supplier but
with an easier structure for you. Bill Avalisation is
Citibank's undertaking to honour on your behalf, payments
of Bills of Exchange. This is applicable to both domestic
and international trade.
receives your import documents with a draft drawn on yourself.
Upon the importer's acceptance, Citibank guarantees the
draft, releases import documents to the importer and forwards
the draft to the supplier's bank, thus enabling fast access
by the supplier.
Supplier Credit Solution using
Citicorp International Trading Company (CITC)
solution involves the use of the Citicorp International
Trading Company (CITC), a trading company wholly owned
by Citibank, which can intermediate trade flows between
exporters and importers, and which can also be used
effectively for both intra-company and third party trade
to The Importer
paying the exporters at sight (or upon an agreed
date), the Importer may be able to negotiate a lower
can be re-structured as trade payables instead of
short-term bank debt, with a positive impact on
the Importer's cash flow/ working capital position.
supplier's credit terms can be extended from sight
to a pre-determined date.