FAQ's : Trade Finance
- Do I need to have an account with BOC(UK) Ltd in order to receive a letter of credit?
No it is not necessary since we can pay the proceeds to your account at any bank or even issue a cheque in your favour. However it is cheaper if you do maintain an account with us since the fee charged for transferring the money to another bank (GBP 30.00) will not apply if we credit an account with us.
- How long will I have to wait for my money?
This depends on what the bank in Sri Lanka has written in the L/C conditions. If the L/C is for a shipment of a vehicle then in general we send the documents to Sri Lanka “in trust” at the beneficiary’s request after checking that all “key” documents are in place.
We try to ensure that they are sent within 2 days after receipt , and they are sent by the courier, which takes a further 2/3 days. In accordance with the UCP600 guidelines, the issuing bank has up to 5 days after receipt to either pay or reject the documents, and so assuming they authorise the payment within or by that time we then make payment to you in accordance with their instructions.
Note: if they ask that we claim the money from their correspondent this will take another 2 or 3 days.
- Are there any charges to pay?
All L/Cs will state in field 71B of their message whether the charges outside Sri Lanka are for the beneficiary’s (seller’s) account or the applicant’s (buyer’s) account.
These are quite independent of any charges the buyer pays to the bank in Sri Lanka for opening the L/C. Our charges are detailed in our tariff which is sent to every new beneficiary at the time we advise the L/C.
- Do I have to bring the documents to the bank in person?
No you do not. All documents received are attended to in the order they are received and personal delivery will not make them dealt with any quicker.