UPAS LC

HOW ITTS CAN HELP YOUR BUSINESS ITTS maintain working relationship with more than 50 global banks. From the long list of our connection banks we can arrange competitive financing offer for your UPAS LC transactions depending on LC issuing bank, commodity and suppliers domiciled country. General terms of ITTS offer for UPASLC financing: ✓ Importer should send us a PI (Pro-forma Invoice) Copy at least 2 working days before Issuing of LC. ✓ Importer’s bank (Local Bank) should be open for Transmitting LC directly to our nominated Bank counter. ✓ LC will be available only at our nominated bank counter. ✓ Borrower’s bank (Local Bank) should be open to include reimbursement as Payment Process Transaction execution process for UPASLC Financing: ➢ Importer’s bank will directly transmit the LC to confirming /financing bank ➢ Confirming and financing bank will add confirmation on the LC and will advise it to exporter’s bank. ➢ Upon execution of shipment, exporter will submit complied documents to their bank. ➢ Exporter’s bank will send documents to confirming bank on payment basis. ➢ Confirming bank will check the documents and if find complied with LC terms, will pay exporter's bank immediately (as per their instructions) ➢ Confirming bank will send the documents to LC issuing bank on acceptance basis. ➢ LC issuing bank will send acceptance of the documents in MT-754 to confirming a fixed date of payment (As per LC terms)

ABOUT UPAS LC UPAS letter of credit a flexible way of trade finance. Owing to financial needs, a seller (beneficiary of the LC) usually expects at sight payment of goods while the buyer (applicant of the LC) wants to buy on deferred payment basis. Thus, neither a sight L/C nor an usance L/C could satisfy both parties. To have an amicable solution to this unique problem in trade UPAS LC came to the scene. UPASLC refers to an USANCE, where other stipulated terms and conditions in the LC indicates that issuing bank or a nominated bank will pay the seller (beneficiary of the LC) on demand or before the acceptance is due, and expenses related to this financing such as the draft acceptance charge, discounting interest and service charge are paid by the buyer (importer). UPAS (Usance Paid at Sight) LC Financing [email protected] +8801714033616

Why Exporter & Importer prefer Field 41A Benefits to ExportersUPASLC name and ✓ Reduces days receivable (DRO) as seller gets payment at Field 42A sight name and ✓ Increases the marketability of products by providing Field 71 buyers with the incentive of extended payment terms. all charge on benefi ✓ Keeps the integrity of the price, as the seller does not need to build in the cost for covering extended Field 47 payment terms. Maintains quality of receivables Point 1: D because payment assurance is still secured through the one set (o letter of credit. Point 2: D ✓ Strengthens relationships with buyers by allowing for (confirm extended payment terms and the availability of lower- payment cost financing credit com Benefits to Importer FIELD 7 Point 1: ✓ Improves days payable outstanding (DPO) by negotiati providing extended payment terms. address o ✓ Reduces the cost of credit, where the discount rate on Point 2: the UPAS letter of credit is lower than the local at maturi borrowing rates for import and working capital loans. on our N amount p ✓ Provides an additional source of liquidity. at least 5 ✓ Keeps the price of goods and associated import duty fees lower because the seller does not incur costs for the extended payment terms. Strengthens relationships with sellers by allowing for payment at sight

Standard LC clauses for UPASLC A: Available With ... By ... - Identifier Code – d swift address of confirming bank code: by negotiation A: Drawee - Party Identifier - Identifier Code d swift address of LC issuing bank B: Charges es outside Bangladesh except confirmation charges and discounting interest are iciary’s account A: Additional Conditions Documents are to be dispatched to (confirming bank’ address and swift code) in original) by courier by presenting bank / beneficiary’s bank. Despite the LC payment tenor is 180/90/360 days from the date of negotiation, ming bank name and swift code) is authorized to negotiate the bill and make to beneficiary at sight for 100% of the invoice value, upon receipt of the original mplied documents at their counter. 78 A: Instructions to the Paying/Accepting/Negotiating Bank. ing bank should forward the original documents to (name, swift code & mailing of LC issuing bank) in one lot through internationally reputed courier. ity, (confirming bank swift code and name) is authorized to claim reimbursement NOSTRO account no xxxxxxxxxxxxxx maintain with (bank name) for principle plus confirmation charges plus negotiation interest under swift intimation to us 5 working days prior to reimbursement date.