Letters of credit

Banking products that ensure payment operations between importers and exporters. Payment may be made either at sight or deferred  on the part of the correspondent.

Kinds of letters of credits:

1. Sight letter of credit : a credit is established under this fund and payment is based on the value in return for submission of documents
2. Usance letter of credit: under this kind of facilitation, payment of the documents’ value is made by the Commercial Bank of Syria under the credit terms on our account in the beneficiary’s bank (exporter) after 6 months of entered date of the beneficiary’s bank.
3. Deferred payment letter of credit: this is used upon the approval of the beneficiary or (exporter) to grant the applicant the credit (importer) with a specific period of time, and after 30/90/120 days of date of bill, redemption of bonds is made to the beneficiary under credit terms.

Targeted Groups: import and export merchants

Term finance: upon their own request, the importer can receive financing from the Commercial Bank of Syria if they did not receive a deferral from the correspondent bank with which the exporting company operates. All credits are paid in foreign currencies eligible to our bank.

Letters of credit : (LC AT Sight): ensures that payment is not made by the correspondent bank unless the circulated documents conform to the credit terms.

Deferral of paying value of imports (LC deferred payment): payment can be deferred upon the approval of the correspondent bank, or if our bank agrees to finance the operation directly (post financing).

Letters of credit are initiated by credit facilities to fund foreign imports.

Regulations of Finance:

- Assessment of credit rating , and grant is given to finance operations of foreign trade

- Ceiling of available funding is %100 of the client’s financial estimate

- Cash security deposits are collected according to the bank’s instructions at a rate of 30% to 50%.

Required references:

- Identification credentials: commercial register – Chamber of commerce – record of Family register – Copy of identification card –latest electricity bill for active workplace - Commissions paid by customer – Forms submitted by branch.

- Customs entry data

- Credentials of real estate collateral: (real estate constraint – financial constraint) and net value should cover collateral by %100 of the extended fund and should be clear and of correct description.