Imports are the goods and services that are purchased from the rest of the world by a country's residents, rather than buying domestically produced items. Imports lead to an outflow of funds from the country since import transactions involve payments to sellers residing in another country.
Also known as a loan or credit facility agreement or facility letter.An agreement or letter in which a lender (usually a bank or other financial institution) sets out the terms and conditions (including the conditions precedent) on which it is prepared to make a loan facility available to a borrower. The loan facility is typically a Letter of Credit, Bank Gurantee or overdraft. A facility agreement may contain more than one loan facility.
An Import LC is one of the most secure methods of importing goods and it allows you to control shipping dates or facilitates a shipment schedule. Many Exporters will not provide goods unless they receive payments in advance or are guaranteed payment by a bank. An LC is a conditional payment guarantee provided by an Importer's bank to the Exporter. The payment guarantee is conditional upon the Exporter providing documentary evidence of the shipment of goods in accordance with the terms of the LC. Import LCs are subject to credit approval. The Facility includes Collateral and non Collateral Facility