Letters of Credit
Letters of credit is a letter from a bank, which is used as presentation to another Bank, authorizing it to issue money to the person named. It is a trade link between the Bank, Buyer and Supplier. We issue letters of credit as a way to ensure that the suppliers get paid as long as they follow the terms and conditions.
- Attractive interest rates
- Duration of payment varies with the period it takes to get your goods
- Assured of getting quality goods
- Processing period 3 to 5 working days
- Copy of ID if Rwandan or passport if foreigner
- Letter of request
- Financial statements for the last 2 to 3 years depending on the business
- Proformas with description of goods and amounts
- Details of the Bank that corresponds with BK
- Guarantee required
- Tangible Security
- 30% provision
1. Who is legible for a Letter of Credit?
Anyone that has a business or is starting business and showcases audited financial reports.
2. If I require a Letter of Credit, who do I speak to in the Bank?
We have a corporate banking team that is readily available to cater to your needs
3. When is payment made to the supplier?
The Bank makes payment to the supplier as soon as the supplier sends the documentation for the shipped goods.
4. When does the customer pay the Bank?
There are three ways,
i) Upon the arrival of the shipped documents the Bank ensures that the supplier is paid on time. On the other hand, the customer ensures that there is cash on his account which the Bank debits or
ii) The customer acquires a loan facility from the Bank for a period x and when the period expires the customer reimburses the Bank or
iii) If the customer has a cash credit line we can also debit the account for the payment. However we inform the customer in advance.