Letter of Credit Issuance

The L/C is a payment undertaking by Bank of China (Malaysia) Berhad to the importer/purchaser. Bank of China (Malaysia) Berhad will fulfill its payment obligation when the terms stipulated in the L/C are complied with. 

Improvement of your bargaining position in a negotiation -- opening L/C provides the exporter/Beneficiary with a conditional payment commitment on top of the commercial credit, giving you better credit by which you may win favorable price terms for your goods. 

Reduction of fund occupation -- for the importer/Applicant who uses the L/C with credit limits, the fund occupation will be minimized during the period between the L/C issuance and payment. 

Importer and exporter wish to promote the level of trade credit by making appointment on each other's business activities. 

The imported commodity is within a seller's market and the exporter insists on settlement with L/Cs. 

Both importer and exporter want to select trade finance out of the lack of liquidity.　

The enterprise is maintaining current account with our bank and having granted the trade facilities by the Bank of China (Malaysia) Berhad. 

Product Disclosure Sheet - Letter of Credit - Version No 2023-09
 

The Applicant/Importer needs to submit the following documents:

a. Irrevocable Documentary Credit Application

b. Insurance Certificate/Policy, if applicable

c. Sale Contract/Performa Invoice