UNDERSTANDING THE CONCEPT OF
AVALISATION OF BILLS www.bcf.ae
BANDENIA CHALLENGER WE PROVIDE TRADE FINANCE SOLUTION
AVALISATION Avalisation is a promissory note by the third party, usually the bank or lending institution, guaranteeing the obligations of the buyer to the seller. It is an effective method that is put into place to secure the rights of the receiving party.
WE AT BCF facilitate you with bill avalisation thereby reducing the risks for the buyers and sellers.
THE AVALISATION PROCESS IS USUALLY CARRIED OUT IN THE FOLLOWING WAY: The drawer of the bill sends the documentation to the processing bank. Next, the important documents are sent to the debtor’s bank from the processing bank. Once the documents are received, a notification is sent with the bill to the client, to accept it and further avalise it.
The debtor on receiving the notifications moves on to sign the bill. Following this, the company stamp is also added to it. After the bill is signed, the bank follows up with the final step of avalisation. With this, the liability against the debtor is recorded, subsisting until the maturation of the bill.
HERE ARE SOME OF THE BENEFITS THAT COME ALONG WITH BILL AVALISATION: The guaranteed bill provided by the bank is the most reliable and secure option. The funds can be used anytime. The interest rates on bill avalisation are significantly lower.
UK Address
UAE Trade Desk
Suite 23, Fifth Floor, 63/66 Hatton Garden,London, EC1N 8LE, United Kingdom.
Suite 602, Sixth Floor, Business Village, Block B, Dubai, PO Box 5610, United Arab Emirates.
www.bcf.ae
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