BAJ aims to grow your business efficiently & Sustainability, BAJ offers Products & Services that focus on your business needs related to import, export, and contract implementation field that are tailored to provide guidance for handling your business trade requirements domestically & internationally.
Letter of Guarantee
Letter of Guarantee is a commitment by BAJ that is independent of the underlying commercial transaction between the business and the beneficiary where it is issued in favor of the beneficiary. BAJ commit without any delay to make payment when it receives a demand that comply with the guarantee terms.
Types of Letter of Guarantees:
- Bid / Tender Bond: To help your business participate in Governmental, non Governmental, and Top Tiers Listed Companies bids, tenders, and auctions. This type of guarantee ensures the seriousness of the submitted offer and confirms the adequacy of the bidder’s financial position.
- Performance Bond: To ensure your business performance of the work agreed upon in the contract awarded by the beneficiary.
- Advance Payment Guarantee: if the contract awarded to your business requires financial capabilities that is unavailable to you business, you can request from the body awarding the contract part of its value to assist him in the implementation, in exchange for a letter of bank guarantee with the same amount and currency.
Shipping Letter of Guarantee
This letter will be issued at the customer’s request if the goods arrive at the port, while the original documents are delayed. The Issuing Bank undertakes to place the original bill of lading upon its arrival at the disposal of the carrier of the goods; in exchange for recovering the shipping letter of guarantee from him. The carrier will be exempt from any liability resulting from the delivery of the goods to the importer, who in turn pledges to the Issuing Bank to guarantee the acceptance of the documents upon their arrival, regardless of any differences therein.
Letter of Credit
Letter of credit is an agreement, where BAJ commit to pay for the purchases/import on behalf of your business against submission of satisfactory documents meeting the specific terms outlined by you business suppliers.
Letter of credit promote the trust and peace of mind between the “Local & International” importers & suppliers in their mutual deals. It helps reducing associated risks with exchanging letters and conducting financial transactions, in addition to verify their compatibility with the letter of credit terms & conditions.
There are two major types of Letter of credits that can be outlined below:
Import Letter of Credit
Import letter of credit is an undertaking to non-recourse that usually issued by the bank to be used in facilitating local & international trade as importers. You can use the letter of credit to provide your suppliers with BAJ commitment that they will make the payment upon delivery of the required documentation with the particular timeframe “credit period” as specified in the documentary letter of credit. This will help your business to reduces its risk of paying for goods in advance by stipulating that the documents presented by the exporter be consistent with the pre-arranged terms of the documentary letter of credit.
Export Letter of Credit
As an exporter, documentary letters of credit provides an undertaking from the buyers' bank that you will be paid, provide your ship the goods and present the required documentation with a particular timeframe as specified in the documentary letter of credit. The documentary letter of credit can be established in most major currencies.
Collection documents
It is used as a substitute for the letter of credit and often between suppliers and exporters, who have an established business relationship among each other. i.e. operations for the exchange of goods / commodities by creating commercial papers that must be collected according to the agreed deadlines.
There are two types of collections that are in-ward collection & out-ward collection.