Letters of credit (L/Cs) feature in one of two new services to be launched by Citibank in the UAE.

The services are specifically designed to win the bank more business from small- and medium-sized enterprises (SMEs) based in the emirates.

New services

The two new services on offer from Citibank are Trade Financing and Cheque/Bill Discounting targeting the SME segment.

Trade Financing involves the issuance of L/Cs and guarantees for SMEs while Cheque/Bill Discounting involves discounting future receivables up to 80 per cent of the value of the receivable for a maximum period of 90 days.

Backup

Citibank says a team of relationship managers will support the new services and will immediately act on a client's need for the issuance of customised trade documents or for further credit for a trade finance account.

The services join what Citibank describe as a basket of business and financial solutions already available for companies based in the UAE.

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