Ukraine stands among the major exporters of sunflower oil, supplying a significant share of the global market. With demand continuing to grow, an Indian buyer decided to import sunflower crude oil from Ukraine using a Letter of Credit as the payment method.
Continue reading to learn how the transaction was successfully completed with DLC payment support.
Our client
The client runs an oil refinery in India and wanted to expand the business by importing sunflower crude oil from overseas suppliers and refining it for the local market. As demand for sunflower oil continued to increase in India, they decided to import 50,000 MT of crude sunflower oil from Ukraine.
The client was aware of the COVID-19 restrictions and other issues that could delay the shipment of goods. Therefore, they wanted to make the supplier confident about receiving payment by using a suitable payment instrument. After discussing the requirement with the supplier, both parties agreed to use LC at Sight as the payment term for the trade.
The Challenge in Availing DLC Payment
The client initially approached their bank to arrange a Letter of Credit for the import transaction. However, the bank required a high cash margin to issue the MT700. Since the client did not want to block their working capital for the deal, they started looking for an alternative Letter of Credit provider.
Our Solution in Providing DLC Payment
The client found our Letter of Credit services while researching online and submitted their MT700 request. After reviewing the transaction and supporting documents, our team evaluated the trade requirements and guided the client through the necessary process.
The Client Success in Using LC Payment
The supplier received the LC payment through the designated bank account within the agreed timeframe. Once the LC was confirmed, they proceeded with the shipment of the required crude sunflower oil.
How to Get a Letter of Credit?
If you are looking to use a Letter of Credit for importing goods from overseas suppliers, you can contact us with your requirements. We can review your transaction and guide you through the appropriate LC process based on your trade requirements.
