UPAS - Optimal capital solution for importers

Outstanding features

Deferred payment

For the Buyer

Get paid immediately

For the seller

Economical

Financial expenses

Utilities

  • Meeting working capital needs for production through deferred payment for goods with reasonable cost.
  • Negotiating a good price because the exporter is paid immediately from the correspondent banks.
  • Preferential foreign exchange rate.

Features

  • UPAS (Usance L/C payable at sight) is a deferred documentary credit payment method, but the beneficiary can be paid immediately from reimbursing bank.
  • L/C currency: applicable to all currencies Sacombank has an agreement with the reimbursing banks.
  • The customer incurs a debt at Sacombank at the time the reimbursing bank makes payment to the beneficiary
  • Tenor: up to 360 days
  • Deposit/Interest: according to Sacombank's regulations in each period.

Eligibility

  • Enterprises purchase goods using L/C as a payment method.
  • Request for Letter L/C issuance according to Sacombank's form and relevant documents (Sale Contract).
  • Dossiers of loans as guided by the bank.

FAQs

1

What should an economic contract show to be able to issue an L/C?

  • The contract shows "Deferred payment of L/C allowing immediate payment"; Payment method: L/C or UPAS.
  • For example: L/C 60 days after sight; Usance drafts may be negotiated on a sight basis; Irrespective of the tenor of the contract, payment is available on a sight basis, etc.
2

Why must the customer incur a debt with Sacombank at the time the reimbursing bank makes an payment to the beneficiary?

This obligation is executed according to point b, clause 3, article 25 of Circular 21/2024 of the State Bank of Vietnam, which states: "When the reimbursing bank makes a payment to the beneficiary, the issuing bank must incur a debt to the reimbursing bank, and at the same time, the customer must incur a debt to the issuing bank for the amount the reimbursing bank has paid to the beneficiary according to the commitment under the letter of credit. The banks shall record the debit entry for the customer upon receipt of the notification from the reimbursing bank."

3

Can the enterprise incur a debt in foreign currency?

The enterprise is allowed to incur a debt in foreign currency when it meets the conditions for borrowing in foreign currency.

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