Enjoy Trade Assurance For Usance Transactions
Our Islamic Letter of Credit provides a guarantee-based trade solution for businesses looking to secure trade transactions without the need for financing from the Bank.
Sirat Islamic Letter of Credit (Usance)
How It Works
- The Bank issues a Letter of Credit on behalf of the customer in favour of the beneficiary, confirming that the payment will be made to the beneficiary upon compliance with the ILC terms and conditions
- Service charges applicable as per the approved Schedule of Charges, covering ILC Opening, Payment and Acceptance fees are debited from the customer’s account upon ILC issuance
- Upon receipt of goods documents, the Bank advises the customer of the documents’ compliance with the agreed ILC terms
- If the customer accepts the goods documents, the customer must pay the due amount on the payment date agreed with the supplier
- If the customer does not pay, the Bank will pay the due amount on behalf of the customer. In this case, the amount paid by the Bank will be a debt on the customer and should be repaid immediately.
When To Choose Sirat ILC
- When you are conducting trade under Usance terms
- When you require the Bank to issue a Letter of Credit without financing the transaction
- When you want to assure the seller of payment upon compliance with the ILC terms
- When you are conducting trade under Usance terms but do not need post-shipment financing
Additional Information
No Financing
Under Usance ILC, no financing options are provided.
Availability of Funds
Sufficient funds to cover the ILC are expected to be available in your account on the agreed due date.
Head Office & Moorgate Branch
Habib Bank Zurich plc
Habib House, 42 Moorgate
London, EC2R 6JJ, United Kingdom
Email us:
customerservice.uk@staging.habibbank.com
- Customer support is available Monday to Friday, 9:00 am – 5:00 pm, excluding UK bank holidays
- Calls are charged at service providers’ rates and all calls may be monitored and recorded