Overview

Back-To-Back Letter of Credit would be issued by the Bank in favor of your supplier on the basis of Master Letter of Credit received from the Buyer on back-to-back or similar terms. Facility is available to the credit customers at the Overseas Branches in UAE, Singapore, and GIFT City

img

Features &
Benefits

Features & Benefits

  • imgConserves the capital, and helps the customer avail non-funded bank limits to finance their raw material purchases with minimal balancesheet support
  • imgConvenient and safe means to finance the cross-border trade of Bulk industrial raw materials
  • imgLarge Commodity Traders benefit from the wide network of Axis Bank’s customer relationships in India, and wide network of correspondent banking relationship
  • imgFacilitate cross border transactions while minimizing country risk concerns for the customer

How it works?

img
Customer of the Bank enters into Back-to-Back Sales Contract and Purchase Contract with the Buyer, and Supplier, respectively.
img
Axis Bank reviews the transaction documents, and ascertains if the various conditions mentioned in the Sanction Letter are met
img
Buyer issues Master LC from an acceptable financial Institution and transmits it to the Axis Bank counters.
img
Axis Bank reviews Master LC, and BTB LC application, and issues Back-To-Back LC to the Supplier as per the agreed credit terms with the Client.
img
Supplier ships the goods and presents documents under the Back-To-Back LC through its relationship bank or directly to Axis Bank branch and claims credit.
img
Customer provides/ substitutes certain documents and makes presentation under the Master LC
img
The presentation is discounted, and payment is made to the Supplier under the Back-To-Back LC. From the residual amount, the Bank recovers the applicable transaction charges etc and the rest is remitted to Customer as profit
img
Documents under Master LC are presented to the Buyer’s bank, and Bank claims credit against documents.

Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion