Trade Finance
Letter of Credit
Letter of Credit (Import)
A Letter of Credit (Import) is issued when an overseas Supplier is asked to supply goods to a local Buyer. This LC is issued for the local Buyer.
Benefits
Timely shipments
No shipment risk
Proof of Buyer’s creditworthiness
Better cash flow
Requirements
Sale Contract, Pro-Forma Invoice or Commercial Invoice
Cash or Collateral
Account with PPCBank
Fees
| Documentary Credit (Import) | Suggested Rate | Comments |
|---|---|---|
| Issuance of LC | 0.1% p.m/min.2-mth/not less than $50 | + Cable charge $50 |
| Amendment of LC: Increase in Credit Value | 0.1% p.m. or part thereof, min. $25 | + Cable charge $20 |
| Extend Validity | 0.1% p.m. or part thereof, min. $25 | + Cable charge $20 |
| Change of Terms (Not Affecting Validity/Amount) | $25 flat rate | + Cable charge $20 |
| Cancellation of LC Charges | $30 flat rate | + Cable charge $20 |
| Import LC Bill Handling Charge | 0.1%, min. $30 | + Cable charge $20 |
| Acceptance Commission (Usance Bill) | 0.1% p.m. or part thereof, min. $50 | Indicative only |
| Reimbursing Fee | $65 flat rate | Normally for beneficiary’s account |
| Discrepancy Fee | $50 flat rate | Normally for beneficiary’s account |
Letter of Credit (Export)
A Letter of Credit (Export) is issued for whom the Supplier supplies the goods to.
Benefits
Timely payment for Seller
No shipment risk
Better cash flow
Requirements
Sale Contract, Pro-Forma Invoice or Commercial Invoice
Account with PPCBank
Fees
| Documentary Credit (Export) | Suggested Rate | Comments |
|---|---|---|
| Pre-advise | $10 flat rate | |
| Advise Documentary Credit | $30 flat rate | $50 For Bank to Bank Adv. |
| Advise Amendment | $30 flat rate | |
| Confirmation | Subject to arrangement | |
| Transfer LC: Full 100% transfer | 0.1%, min. $50 | |
| Partial Transfer | 0.15%, min. $70 | |
| Export LC bill handling charge | 0.125%, min. $50 | + DHL courier charge |
| Negotiation Fee | 0.125% | |
| Issuing Assignment of Proceeds | $50 flat rate | Local Only |