A Letter of Credit (LC) is a conditional undertaking given by a bank (issuing bank) on behalf of a buyer or applicant to pay a seller/beneficiary against stipulated documents, provided all terms and conditions are complied. A letter of credit is the safest and most convenient means of payment for exports in all domestic and international trade. Global IME Bank Limited offers inland and foreign letters of credit of two types:

Sight LC: The Letter of Credit which needs to be settled/ retired within 5 banking days after the sight of the documentary bill following the date of presentation provided that the documents credit compliant.

Usance LC:  The Letter of Credit which needs to be settled/retired in a specific future date only after acceptance of the presented documents

Import Letter of Credit Cycle

• The buyer and seller negotiate the deal for purchase/sell of goods/ services and approach the LC issuing bank to open an import letter of Credit (LC).
• The issuing bank issues the Letter of Credit and sends it to the advising bank for advising the LC to the beneficiary, the advising bank advises the LC to beneficiary for shipment of goods.
• The exporter/seller exports the goods as per the terms and conditions of the LC and submits the relevant documents as stated in the LC to the negotiating/nominated bank
• The negotiating bank forwards the original documents to issuing bank for payment under LC
• The issuing bank obtains the payment from the applicant/buyer and sends the payment to the negotiating bank to further credit the payment to the beneficiary/seller.
•  The issuing bank provides the LC documents to the applicant/buyer for the release of goods from the customs.

Global IME Bank offers export LC advising and negotiation services. Under export LC negotiation, we purchase sight bill of exchange and discounting of usance bill of exchange. We negotiate export bills subject to all terms and conditions under the letter of credit are complied with.
 

A Letter of Guarantee is an irrevocable promise made in writing by one person  (guarantor or surety ) to another party( the beneficiary) to answer for the debt or default of a third party (principal debtor).

Global IME Bank Limited provides international guarantees besides local guarantees. We have our correspondent bank in Asia, America and Europe. We provide below mentioned guarantees:

• Bid Bond Guarantee
• Performance Bond Guarantee
• Advance Payment Guarantee

Global IME Bank offers an option to open bank guarantee online as well. 

Documentary Collection offers low-cost but secure alternatives to letter of credit to trade. It is easy and convenient to route documentary collection through Global IME Bank Limited. The bank offers both inward and outward documentary collection services in a very competitive pricing in compliance with ICC publication Uniform Rules for Collection number 522 and Nepal Rastra Bank directives for both sight (DAP) and usance (DAA) collection documents.

Customers of Global IME Bank can now apply for Letters of Credit (LC) and Bank Guarantees (BG) entirely online using our secure and reliable platform.  

Open LC/BG Online

Bank Guarantee Tutorial

Letter of Credit Tutorial

Process Note: Corporate Registration

Process Note: LC

Process Note: BG