At NIB we negotiate your export bills drawn under the Letter of credit, if the documents are found to be strictly in terms with LC conditions and without any discrepancy.
Alternatively, we negotiate under reserve, by cabling the LC to LC issuing bank for authorization to negotiate despite the discrepancies, and also send the documents to the LC issuing bank for approval and payment.
All these facilities come to you at competitive rates and unmatchable turnaround time
Concentrating your Documentary Collection activities with Commercial Banking, you can eliminate many of your exporting hassles.
Not only will your international banking become much more uniform, you can experience fewer delays in receiving payment, effortlessly access collection information details, gain increased control over export receivables and efficient cash flow management.
To help speed up your cash flows, NIB can purchase/discount your export receivables tied to your export bill collections subject to availability of credit limits.
Documentary collections offer a simple, cost-effective and secure means of trading internationally.
If your buyer does not issue DCs, collections offer the next safest alternative to open account trade.
During a collection, banks act as intermediaries, ensuring that documents are only released against payment or acceptance.
Collections offer the seller comfort that they will not lose control of the goods without payment or the promise to pay.
Meanwhile from your buyer’s perspective, collections offer a simple and cheaper alternative to the DC and hence may enable you to negotiate better terms.
NIB offers a choice of documentary collection methods, each offering you peace of mind while helping you to reduce costs by
- Documents against payment (D/P) – documents are released to importers upon payment.
- Documents against acceptance (D/A) – documents are released to importers against their promise to pay.
LC Advising
You can always insist that your Letter of credit is advised through NIB Bank.
At NIB you can assure that your export LC will always reach you on time.
This will help you in better logistics management and enhanced accuracy in the preparation of documents.
On request, we can pre-advise LCs by telephone and fax so that you can start arranging your shipment immediately without even having to collect the LC.
With our expertise, we can explain complex LC terms to you and your staff.
This will help you to prepare your documents easily and error free.
LC Confirmation
When you are not comfortable with the credit standing of an LC opening bank or if you are worried about the political climate or credit risk of the buyer’s country, we are there to assist you with our LC confirmation services.
Once we add our confirmation to the LC, you are assured of payment, subject to non-discrepant documents, irrespective of non-payment by LC opening bank.
Even when LC does not provide for confirmation, we can assure you payment (silent confirmation) subject to certain conditions.
So what are you waiting for? Ask your buyers for Freely Negotiable LCs so that you have the control and flexibility to select your favorite bank for managing your export receivables.
With NIB Bank’s confirmation services, you can eliminate the foreign bank and country risks from your export collections.
Bills Purchased
Do not worry when your exports are not covered under Letter of Credit.
Against sanctioned credit limits, NIB Bank can purchase and pay you the discounted value of your invoice, immediately on shipment.
The proceeds will be credited to your account if the export documents are presented before cut off time at your NIB Bank’s branch.
Foreign bills purchased (on account) are a post shipment finance facility.
In order to avail this facility a limit is approved at the request of the party.
NIB Bank at an agreed rate of return extends this facility, which is allowed against export documents under collection.
For these finances, NIB Bank preferably holds collateral securities.
If the foreign bills are purchased against LC, we may extend financial accommodation through negotiation/discounting at prevailing exchange rate, of foreign documentary bill accompanied by the relevant documents of title to goods.
For financing of export bills drawn under LC the branch shall ensure that.
- The document has been drawn strictly as per the terms of the LC.
- All direct bank expenses, i.e. foreign correspondent’s charges; claimed by the opening bank/reimbursing bank, if any, shall be recoverable from the exporters unless it is expressed in the LC that the charges are on an opener’s account.
- Due care and necessary precautions are exercised before negotiating/discounting of documents.
- Reimbursement instructions in LCs shall be carefully studied before negotiating/discounting of documents.
Inland bills (documentary/clean) purchased facility will be allowed to customers against Inland documentary bills, checks, draft etc.
In case of dishonor of any such instrument, the related party‘s account shall be debited and simultaneously the drawer shall immediately be asked to arrange for sufficient funds in the account for adjustment thereof.
