City Commerce Bank is a Financial Company offering specialized services including but not limited to trade finance, international project financing and swift financial messaging to a global network of clients spanning across the world. City Commerce Bank is able to quickly understand its client's needs and use its long standing reputation, credibility, and financial strength to underwrite or broker solutions for its clients from organizations globally. Put simply it is able to deliver for the client.

HOW WE DO IT

City Commerce Bank handles transactions which require for using appropriate Financial Instruments such as - Standby Letters of Credit (SBLCs)/ Bank Guarantees (BG's), Letters of Credit (LCs), Proofs of Fund (POFs), Fund Transfer Instruments etc. These are issued or brokered for discerning clients that may have the use for such instruments for their needs. These Instruments are issued by Banks and Financial Institutions globally and City Commerce Bank uses its balance sheet and contacts to confirm and stand as a guarantor in the middle to make these transactions come to fruition. These are a demonstration to the receiver/seller that the issuer/buyer has the capacity to pay for the transaction/ deal/goods, which is usually done at the time of the issuer/buyer's obligation to pay/on the respective dates of payment commitments/ receipt of goods, etc. There is no doubt that while this sounds easy, this is done with a detailed due diligence by City Commerce Bank on all sides and also by the providing Institutions which are namely banks and financial institutions globally.

• Commercial letters of credit
• Confirmed letter of credit
• Standby letter of credit
  
• Payment guarantee, payment bond, SBLC
  
• Used for payment obligations from one to another
  
• Revolving letters of credit
• Back to back letter of credit
• Letter of credit issued by reliance on an incoming letter of credit
• Hide the identity of your supplier or manufactures
• Bid bonds (Tender Guarantee)
• With today's fast growing markets industry, our services as financial institution can offer securities when business is done across country borders. We can provide tender guarantee to bid on a construction project or a confirmed Letter of credit to buy goods or many difference types of commerce letters of credit and bank guarantee.
• Performance Guarantee
• Performance bond
• Guarantee that client will fulfil contract obligations
• Advance payment Guarantee
• Advance payment bond
• Issued prior to a contractual obligation alongside advance payment
  

Procedures:

At sight letter of credit procedure

1. Send us pro-forma invoice and/or sales contract.
2. We will create a draft instrument and quote you our charges.
   
3. Once you have accepted the draft, we will send you indemnity documents which needs to be signed and notarized by a lawyer.
   
4. We will send you invoice for our charges.
   
5. Once you have paid us, we will swift the instrument to the beneficiary's bank immediately. Escrow account payable upon swifting of the instrument is acceptable.
   
6. The beneficiary will send the goods to you and the documents to us.
   
7. Once documents have arrived, we have 5 business days to accept or reject the documents. We will send you a copy of the documents.
   
8. Upon acceptance of the documents, you will be required to pay the beneficiary. When completed, we will send you all the original documents.
   
9. Goods arrive.

Usance (deferred) letter of credit with conditional acceptance procedure

1. Send us pro-forma invoice and/or sales contract.
2. We will create a draft instrument and quote you our charges.
3. Once you have accepted the draft, we will send you indemnity documents which needs to be signed and notarized by a lawyer.
   
4. We will send you invoice for our charges. Applicant will pay us along with a postdated check for the full amount of the instrument. 
5. We will swift the instrument to the beneficiary's bank immediately. Escrow account payable upon swifting of the instrument is acceptable. 
6. The beneficiary will send the goods to you and the documents to us.
   
7. Once documents have arrived, we accept or reject the documents. We will send you a copy of the documents.
   
8. Goods arrive.
   
9. We will provide an acceptance note based on the terms and conditions of the LC along with all original shipping documents.
   
10. You will pay the beneficiary according to the terms of the LC (Up to 2 years from shipment date) or allow us to cash the postdated check and pay the beneficiary directly.

Standard letter of credit procedure

1. Send us the underlying relationship contract (Ex: Sales Contract).
2. We will create a draft SBLC and quote you our charges.
   
3. Once you have accepted the draft, we will send you indemnity documents which needs to be signed and notarized by a lawyer.
4. We will send you invoice for our charges.
5. Once you have paid us, we will swift the instrument to the beneficiary's bank immediately. Escrow account payable upon swifting of the instrument is acceptable.
6. You will pay the beneficiary at least 14 days before the expiry date (Up to 2 years from SBLC issue date).

Glossary:

Documentary Credit

Swift Financial Messaging

Applicant

Beneficiary

Issuing Bank

Advising Bank

Negotiating Bank

Confirming Bank

Advising bank