A payment guarantee from your bank to your seller upon proper documentation from the seller
- Imagine you’re a local toy dealer and you’re planning to import 3 containers of soft toys from China for the first time. Both you and your seller do not have any prior relationship and thus have no confidence in carrying out the transaction
- You can request for our bank to issue a LC-i as a form of written undertaking to make payment on your behalf to your seller upon receiving documents requested by you.
- With this solution, both of you and your seller’s risks are reduced significantly and a strong trade relationship can then be built
- LC-i is based on Shariah contract of Wakalah (agency)
- Sight LC-i or Usance LC-i
- Issued in Ringgit Malaysia or Foreign Currency
- LC-i must be irrevocable
- Amendment is allowed
- Specific terms and conditions may be inserted in the LC-i as a business requirement agreed upon by both parties, applicant and beneficiary