Documentary Letter of Credit
A documentary letters is an irrevocable undertaking by the bank on behalf of a customer to make payment of specified sums to a specified beneficiary on a specified date provided that specified documents are presented through a correspondent bank in order to finance the import of goods into Rwanda, to guarantee the payment for services to be rendered to a business by another party,
Features
- Savings on cash outflows before goods arrive.
- Guarantee of receipt of goods from supplier
- L/C’s would not normally be issued for longer than twelve months.
Basic Application Requirements
- Copy of the statutory documents (Statutes/Memorandum of Association and Articles of Association, Certificate of registration or a copy of identity card for individuals)
- Financial statements for 3 consecutive years (Balance sheet & Income statement) if it has been in operation. For the start ups we require opening balance sheet and income statement forecast.
- Tax clearance certificate from the RRA no more than three months old where considered appropriate
- Pro-forma invoices or contracts for goods and services to be imported.
