This is an undertaking given by the Bank to honour, on a customer’s behalf, payments of Bills of Exchange. This service is applicable to both domestic and international trade. The facility is normally used where the seller’s only concern is the buyer’s risk
- Payment is guaranteed by a bank
- Drawee can obtain or Credit & Discount on availed bills
- The Bank charges a fee and a commission.
- The product has a maximum tenor of 180 days.
- The facility needs to be fully secured by asset collateral