Through an inward letter of credit, our exporting client (Beneficiary) can look to the Issuing Bank for payment instead of relying on the ability/willingness of the buyer. In other words, the financial standing of the buyer is replaced by that of the issuing bank which undertakes the process and standing of payment.
In order to ensure safe and effective trade for our clients, once the letter of credit is confirmed, AJIB will add its credit standing to that of the issuing bank and thus it becomes AJIB’s commitment to pay the client if the payment is not obtained from the issuing bank - provided that the requested shipping documents are presented in full compliance with the LC’s terms and conditions.