Financing of Commercial Contracts
Bank of Palestine provides financing commercial contracts services to its customers by means of letters of credit and collection bills the value of which Bank of Palestine pays to the source, while granting customers an agreed upon moratorium.
Features of the Service
- Facilitate purchase transactions concluded abroad for importers and customers of the Bank.
- Importers receive goods at a lower price and payment to the source is made at sight and is not deferred.
- Importers benefit from the moratorium by way of selling the imported goods and thence paying their value to the bank.
- The service is a tool that provides cash to customers which customers can use to finance their businesses.
How to apply:
- Customers submit an application for the issuance of a letter of credit.
- The bank pays the amount of the credit to the source as soon as the correct bills have been submitted. The customer pays the amount to the bank after a period of time agreed by both from the start.
- The customer is notified upon receiving payable collection bills.
- In case the customer accepts the bills and expresses a wish to pay their value after a period of time, the bank pays the amount to the source immediately and then the customer repays the amount to the bank within a time period mutually agreed upon.