Back-to-Back Letter of Credit (LC) lines are a powerful trade finance tool designed to support intermediaries and trading companies involved in import-export transactions. This solution enables businesses to bridge the gap between the supplier and end-buyer by issuing a secondary LC backed by a master LC received from the buyer.

How it Works:
A Back-to-Back LC is issued by a bank on behalf of a trader using the incoming LC from their buyer as collateral. It allows the trader to purchase goods from a supplier without using their own capital, while ensuring that the supplier receives secure payment terms.

Ideal For:

• Importers and exporters

• Traders acting as intermediaries

• Businesses without upfront capital for large transactions

• Companies managing complex, multi-party trade deals

Key Features:

• Enables smooth trading without tying up working capital

• Enhances credibility with suppliers

• Mitigates risks with secure payment terms

• Flexible and tailored to transaction-specific needs

Why Choose This Facility:
Back-to-Back LCs provide a secure, transparent, and efficient financing method for trade intermediaries. They allow you to manage supplier payments while waiting to receive payment from your buyer—maintaining liquidity and operational efficiency.