Documentary Credits
Secure and reliable documentary credit services for importing goods and raw materials from abroad, backed by Hisab Bank’s expertise and global network.
Secure International Trade
A letter of commitment issued by the opening bank at the request of the applicant (buyer), in which the bank undertakes to pay a certain amount to the beneficiary (seller) upon receipt of documents that comply with the agreed terms stated in the credit.
Hisab Bank’s documentary credit services provide businesses with the security and reliability needed for importing goods and raw materials from abroad. Our expertise and global correspondent network ensure smooth and compliant international trade transactions.
For Importing Goods and Raw Materials
A letter of commitment issued by the opening bank at the request of the applicant (buyer), in which the bank undertakes to pay a certain amount to the beneficiary (seller) upon receipt of documents that comply with the agreed terms stated in the credit.
Classification of Documentary Credits in Terms of Payment or Coverage
Self‑Funding Documentary Credit
The value of the credit is covered by the applicant (the customer) from their own resources upon receipt of the documents. The bank opens credits against previously agreed commissions and fees, as well as cash collateral forming a percentage of the credit value or appropriate guarantees provided to the bank.
Murabaha‑Financed Documentary Credit
This is a credit that requires prior approval from the bank for Murabaha financing before its issuance and before shipping the goods. Upon submission of a quotation invoice from the supplier, the terms of Murabaha financing are fulfilled in addition to collecting commissions and fees according to the pricing table.
Conditions for Opening Documentary Credits
- A legally registered business activity that includes import within its scope and the type of goods to be imported.
- Availability of cash coverage for the credit value either from the customer’s own sources or bank financing, in addition to commissions and fees.
- The supplier country or the supplier should not be listed on global sanctions lists.
- The supplier’s country must have a correspondent bank approved by our bank.
- No shipment or issuance of cash invoices or bills should occur before the agreement and approval of the bank to open the credit.
- The shipping bills must be issued in the name of the bank.
Why Choose Hisab Bank for Documentary Credits
Our documentary credit services are designed to facilitate secure and efficient international trade.
Security & Reliability
Your international transactions are protected by Hisab Bank’s commitment to security and compliance.
Global Network
Access to a wide network of correspondent banks across 15+ countries for seamless trade finance.
Sharia Compliance
All documentary credit services adhere strictly to Islamic principles and are approved by our Sharia Board.
Efficient Processing
Streamlined processes and expert guidance to ensure timely issuance and execution of credits.
Simple Process to Get a Documentary Credit
Obtaining a documentary credit from Hisab Bank is straightforward and efficient.
Submit Application
Contact our trade finance team and submit your documentary credit application.
Provide Documents
Submit the required documentation, including commercial invoices and shipping details.
Approval & Issuance
Our team reviews and approves your application, then issues the documentary credit.
Execution & Settlement
The credit is executed upon presentation of compliant documents, and payment is settled.
Documentary Credits FAQs
Quick answers to the most common questions about our documentary credit services.
What is a documentary credit?
A documentary credit is a letter of commitment issued by a bank at the request of a buyer, undertaking to pay the seller upon presentation of documents that comply with the agreed terms.
What types of documentary credits do you offer?
We offer self‑funding documentary credits and Murabaha‑financed documentary credits, both fully Sharia‑compliant.
Are documentary credits Sharia‑compliant?
Yes. All our documentary credit services are structured in accordance with Islamic principles and approved by our Sharia Supervisory Board.
What documents are required to open a credit?
You will need a commercial invoice, shipping documents, and proof of a legally registered business activity that includes import within its scope.
How long does it take to issue a documentary credit?
The processing time depends on the complexity of the transaction. Our team works efficiently to issue credits as quickly as possible.
How do I apply?
Contact our trade finance team or visit any of our branches to begin the application process.
Need a Documentary Credit?
Contact our trade finance team today to discuss your import requirements and how we can help facilitate your international trade transactions.
Contact Our Trade Finance Team