Letter of Credit in Saudi Arabia is an agreement and a pledge to pay for the purchases or the imported goods on your behalf in exchange for providing the required documents.
According to the conditions specified by the supplier, it also provides the required payment guarantees to the supplier under an agreement contract.
It gives you the deferment of the payment until the shipment is complete and the corresponding evidence is provided by the seller.
Saudi banks allow you to issue a letter of guarantee to shipping companies.
This allows you to receive the required goods at the specified shipping ports through the agreed documentary credit.
If the documents do not arrive, the private Letter of Credit is will be accepted in Saudi Arabia and all over the world.
This makes it easier for the issuer to benefit before or after financing the shipment from its bank.
Letter of Credit saves you from receiving the goods on time according to the stipulated schedule in Letter of Credit as well as the ability to enter deals with new suppliers on competitive terms.
Letter of Credit services in Saudi Arabia are available to all Letter of Credit facilities customers and coordination is done through the team of bank relationship managers for private companies in all banks.
In the absence of a credit record for the account, Letter of Credit may be issued with appropriate cash reserves.
Also read: The Most Famous Industries in Saudi Arabia