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Union Bank launches initiative for trade finance

Monday 8 October 2018 13:57 CET | News

Union Bank of Nigeria has unveiled a initiative called Local Letter of Credit, a variant of the standard letter of credit adapted for use in domestic trade.

The newly introduced local letter of credit bridges the payment gap between local buyers and suppliers, with Union Bank assuming the liability for payment to the seller. This, according to the bank, positions the buyer more favourably, providing them with leverage in commercial negotiations. Also, with the local letter of credit, customers are able to obtain preferential conditions like extended payment days, thereby reducing working capital costs.

Union Bank representatives have stated that the launch of the local letter of credit will also help the bank’s customers save costs and stay in business and they encourage banks to follow suit in providing solutions to help business growth.

 


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Keywords: Union Bank, Nigeria, trade finance, local letter of credit, standard letter of credit, domestic trade
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Countries: World