UPAS LC Financing:
UPAS LC (Usance Letter of credit payable at sight) refers to a letter of credit is similar to a traditional usance letter of credit, the seller is paid on a sight basis upon presenting compliant documentation to the buyer’s bank. Charges and interest of financing bank are paid by the buyer
Why UPAS LC financing is Required
Buyers always want to buy in credit on the other hand sellers always prefer to sell in cash. UPAS LC is the perfect solution that could accommodate the interest of buyers and sellers. As a seller to be paid at sight but the buyer will pay at a future time, so a financing source should be there to finance the transaction for the period starting from when the seller receives his payment to when the buyer will pay for this purchase.
How We Can Assist Your Business
BFTS maintains a working relationship with more than 70 global banks who are interested to finance UPAS LC transactions depending on LC issuing bank, commodity and suppliers domiciled country. BFTS can offer you the best solution for the financing of your UPAS LC at competitive pricing with a simplified execution process.
Benefits to Clients:
i) Access to cheaper funding to reduce cost of finance
ii) Team of BEE Global will be engaged with the entire transaction process to ensure seamless operation (LC transmission, Shipping Document Handling, Disbursement, etc.)
iii) In case of cash flow challenge, BEE Global will also ensure refinancing of the transactions
iv) In case of deferred LC, we can also offer UPAS (as per LC terms, LC tenor will be 360 days from date of BL, but supplier will get payment on 180th day from date of acceptance)
Refinancing
Benefits of Client:
i) Cheaper source of funding
ii) Possibility to reduce overall cost of fund by settling high interest-bearing liabilities (Overdraft / Demand Loans etc.) by using the surplus fund
iii) Interest arbitrage and potential gain by investing the surplus fund in high interest-bearing instruments (Fixed Deposits)