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Letter of Credit

Meeting your trading obligations  

Fill & submit LC application

Letter of Credit

Secure your trade. Empower your growth.

Letters of Credit are essential instruments in international trade, offering trust and assurance between buyers and sellers.
By eliminating the risk of non payment, they ensure smooth cross border transactions, helping businesses trade
confidently and reliably.

Import Letter of Credit

Trade with Confidence Backed by al rajhi bank! alrajhi bank issues an irrevocable payment undertaking on behalf of the importer to pay the exporter upon compliant document presentation. This means the bank’s creditworthiness replaces the importer’s, strengthening trust in international dealings.

Features and Benefits:

  • The importer ensures that payment will only be undertaken if the exporter complies with the terms and specifications of the letter of credit.
  • Immediate notification to importer upon receipt of documentation.
  • Importer improves his negotiating position through Al Rajhi Bank’s payment guarantee.
Import Letter of Credit

MUSHARAKA Letter of Credit

Shariah Compliant Import Financing Through Partnership! This structure mirrors the Import LC with a Musharaka twist alrajhi bank and the importer jointly acquire the goods based on agreed profit sharing ratios. Once documents are verified, the bank sells its share to the customer on deferred terms.

Features and Benefits:

  • Importer contributes only part of the required funds.
  • Importer is assured that payment will only be made to the exporter only when he complies with the terms and conditions of the letter of credit.
  • Importer can defer payment to the bank on arrival of the goods as per prior agreement with the bank.
  • Immediate notification to Importer upon receipt of documentation.
  • Importer improves his negotiating position through Al Rajhi Bank payment guarantee.
Musharaka Letter of Credit

UPAS Import Letter of Credit

Usance Payable at Sight. Best of Both Worlds. This LC type allows the exporter to receive payment immediately upon compliant document submission, while the importer settles with al r ajhi bank at a later agreed date combining supplier satisfaction with importer cash flow flexibility.

Features and Benefits:

  • Facilitate commercial negotiations as its Exporter receives payment at sight basis.
  • Strengthen the relationships with the exporter by allowing for payment at sight while LC is on Usance basis.
  • Competitive Financing price.

Export Letters of Credit (Advising / Negotiating / Financing)

alrajhi bank validates and advises LCs, manages documentation, and coordinates with the issuing bank. On approval of shipping documents, the bank may provide upfront financing improving exporter liquidity.

Features and Benefits:

  • Pledge from alrajhi bank to pay the value of the complying presentation.
  • Providing Islamic financing for exporters at competitive prices
  • Reducing the risks of dealing with the country and issuing bank of LC

Export Letter of Credit Confirmation

Guaranteed Export Payments, even in Uncertain Markets. When added to the issuing bank’s commitment, al r ajhi bank’s confirmation ensures payment to the exporter either at sight or future date based on LC terms.

Features and Benefits:

  • Undertaking from alrajhi bank to pay the value of the complying presentation.
  • Mitigating the country risk of the importer.
  • Mitigating the issuing bank credit risk.

Requirements

  • Current Accounts with alrajhi Bank

  • Credit Facility

How to apply

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