ABBANK promotes financial solutions for import and export customers

In the context of strong growth in import and export trade, banks have also developed financial solutions to support international payment transactions to be convenient, safe and avoid many risks. In international payment transactions, the form of letter of credit (L/C) is quite popular. At An Binh Commercial Joint Stock Bank (ABBANK), along with L/C, UPAS L/C product has also become one of the outstanding modern trade finance products, bringing many benefits to export customers. import (import and export plan) as well as domestic trade with both international and domestic partners.

A deferred letter of credit – UPAS L/C (short for Usance Payable At Sight Letter of Credit) is a letter of credit issued in the form of deferred payment, which contains a provision that allows the beneficiary to receive money immediately or Upon receipt of early payment from the Sponsoring Bank on the due date for payment of the Letter of Credit, ABBANK will return both principal and interest incurred to the Sponsoring Bank. This solution is applicable to both domestic purchases (domestic L/C) and imports (imported L/C).

Deferred Letter of Credit – UPAS L/C for import and export customers.

ABBANK’s representative said: “UPAS L/C is the key product for ABBANK’s import and domestic customers in 2022 with the orientation of diversifying services, besides it is also a tool to help ABBANK increases fee collection, reduces credit risk.

The benefits of a deferred letter of credit include reduced financial costs, equivalent to foreign currency loan interest rates. Specifically, the product can help buyers access capital in VND/foreign currency at a cost savings of 20%-50%, even if the buyer is subject to restrictions on foreign currency lending according to Circular 37. /NHNN. QT LM Joint Stock Company – a customer of ABBANK using UPAS L/C products at the Bank commented that: “Advised by a team of enthusiastic and dedicated Trade Finance Specialists at ABBANK, we received Seeing that this is a safe payment method, avoiding risks for buyers such as the delivery schedule is not as committed or the seller does not deliver the goods… In fact, UPAS L/C has also helped buyers like businesses. We save significant financial costs”.

Many import-export businesses have taken advantage of UPAS L/C to enhance their competitive advantage.

Compared to a regular letter of credit, a UPAS L/C allows the Importer (buyer) to be deferred and allows the Exporter (the seller) to receive payment immediately or earlier than the deferred payment term of the L/C. . This will create advantages for businesses in negotiating with export partners. At the same time, helping buyers make quick and safe payments at a reasonable cost, saving capital by 2-3%/year when compared to conventional loan products.

On the other hand, this type of letter of credit helps the seller’s production and operation process not be interrupted, because the money is made immediately without having to wait for the payment of the buyer’s debt. In the current market context, UPAS L/C products have supported trade between domestic and foreign enterprises (imported UPAS L/C) or between domestic enterprises (domestic UPAS L/C). ) takes place smoothly and safely, avoiding many risks.

“With many prestigious awards in the field of international payment and stable outlook for many consecutive years by Moody’s, ABBANK has always strived to bring optimal and effective products to customers. In addition, ABBANK always ensures its prestige in strictly implementing its commitments, paying on time, the quality of payment electricity is nearly 99%, so it is always trusted by foreign banks to cooperate and choose as a partner. familiar partners”, a representative of the Bank added.

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