UPAS (Usance LC payable at sight) is a deferred payment method of documentary credit, in which the customer (the importer) can purchase goods with defered payment (up to 180 days) but the beneficiary (the exporter) can immediately get paid.
- Currencies: USD or other foreign currencies agreed by financing bank;
- Deferral period: according to LC term (up to 180 days);
- Services fee: from 3.6% p.a to 4.1% p.a;
- Collateral method: Under regualations of Vietbank at certain time.
Purchase goods with deferred payment at appropriate cost of capital (less than interest rate of regular loans in VND);
Reduce financial costs (UPAS LC services fee is equivalent to interest rate of loans in foreign currencies);
Be financed in foreign currency with comparative interest rate regardless of repayment source from export or not;
Enhance liquidity, improve cash flows, maintain and expand relationships with foreign partners.