How a UAE Trading Company Secured a Sight Letter of Credit
in Just 7 Days
Through Express Trade Finance
The client, a UAE-based trading company, urgently required a compliant Sight Letter of Credit to secure a transaction with a supplier in Turkey, all without tying up their own capital.
Successful Issuance
100%
7 Days
Turkey
Client Profile
A UAE-based trading company required a Sight Letter of Credit (LC) in favor of its supplier in Turkey. The supplier’s bank insisted on an LC issued by a reputable financial institution to secure payment at sight. The client needed a solution that would satisfy the supplier’s strict banking requirements while navigating their own liquidity constraints.
The Challenge
Core Problem
The client needed to issue a compliant financial instrument immediately to proceed with commercial arrangements. However, they required a solution that did not rely on their own existing credit limits or facilities, which traditional banking routes often demand.
Key Pain Points
Credit Constraints: Need for a solution that did not rely on the client’s own credit limits.
Urgent Timeline: Requirement for a fast turnaround to meet strict commercial deadlines.
Compliance: Need for a bank-acceptable LC structure fully aligned with UCP 600 standards.
The Solution
Express Trade Finance (ETF) facilitated the transaction by arranging the issuance of the Sight LC through a third-party collateral-backed structure, ensuring the client’s own credit lines remained untouched.
Our Approach
ETF’s scope of work focused on efficient facilitation and strict compliance. We structured the Sight LC using third-party collateral support and managed the entire coordination process with the issuing financial institution.
Our team ensured all LC terms were aligned with standard banking practices (UCP 600) and managed communication between the client, the issuing entity, and the supplier’s advising bank. The process moved swiftly from the receipt of transaction parameters (Day 1) to the structuring and approval of the draft (Days 2–3), followed by compliance review and SWIFT issuance (Days 4–6).
The Results
By Day 7, the Sight LC was successfully issued and transmitted to the supplier’s bank in Turkey, meeting the total turnaround time of 7 working days.
Supplier obtained payment assurance and proceeded with commercial arrangements.
Client secured a bank-backed payment instrument without utilizing its own credit facilities.
Transaction completed successfully within the required timeframe.
Reduced credit exposure for the client compared to traditional bank channels.
Issued in
Facing a Tight Deadline for Your Letter of Credit?
Don’t let credit limits or slow banking processes stall your trade deals. Express Trade Finance specializes in fast-track issuance that meets your deadlines.