Al Rajhi Bank receives the exporter’s documents from the exporter’s overseas bank, which represents the ownership of the merchandise and the instructions for collecting from the exporter's bank. At maturity or at sight, Al Rajhi Bank remits the funds and pays the overseas bank. Al Rajhi Bank is not obliged to pay the overseas bank if the importer (Al Rajhi Bank client) has insufficient funds in his account.
Features and Benefits
- Al Rajhi Bank’s Client (importer) will ensure that the documents are as per his requirements before payments are made to the exporter or before committing for the payment
- Al Rajhi Bank acts as the representative of the importer using the bank’s structure, long years of extensive experience and efficiency to deal with commercial and financial documents
- In terms of collections, the importer (Al Rajhi Bank’s client) has the legal obligation to pay if he has accepted a draft or promissory note
Al Rajhi Bank remits the documents representing the ownership of the merchandise and the collection instructions to its clients (importer) upon payment or acceptance of a draft or promissory note.