Documentary credit letter

Al Baraka Sudanese Bank provides the documentary credit letter service, which is a means of payment for completing foreign trade transactions. It represents an undertaking from the bank that opened the credit based on the request of the importer, according to which it undertakes to pay the value of the import documents submitted to it from the bank with which the credit letter is opened in favor of its exporting client, who is the beneficiary, according to certain conditions and controls included in the credit letter. Thus, the credit letter is a guarantee factor for the exporter to receive the value of his goods after shipment, and it also guarantees to the importer that the goods conform to the specifications he wants.

Benefits And Features

  • The seller shall be paid the value of the goods immediately after shipment, provided that documents conforming to the conditions and deadlines of credit are submitted.
  • The buyer gets the goods with the required specifications in the credit.

How to get service

  • The client submits to the bank a request (the credit letter form is filled out) to issue the documentary credit and specifies the conditions and deadlines, and attaches a proforma and a copy of the valid Importers' and Exporters' Register.
  • The bank will study the application and determine the cash margin and guarantees required to approve the issuance of the documentary credit letter.
  • The bank issues the documentary credit letter after the cash margin has been met and the client has provided guarantees and maritime insurance policy.
  • The bank charges a fee for opening the documentary credit letter.