SCB can serve as your Recipient Bank when your customer pays under a Bank Payment Obligation (BPO). A BPO is an irrevocable agreement by your customer's bank (the Obligor Bank) to pay your Recipient Bank (SCB) if the trade data you provide matches the trade data in the BPO.
The BPO trade data are conditions set by your customer for your company to meet. The trade data you provide prove your
performance in meeting those conditions. This data typically includes commercial, transport, insurance or certification information, which your company must present to the Bank for verification.
As such, a BPO is a payment method similar to a Letter of Credit (L/C), because the obligor of the payment is your customer's bank. That bank must pay when your company shows it has complied with all the pre-set conditions. The difference is that the BPO relies on an electronic platform, namely a Transaction Matching Application (TMA), to verify the information automatically. Moreover, a BPO allows the required information to be sent and received electronically. In contrast, an L/C requires bank personnel to transfer and check physical documents manually.
Be notified as soon as an L/C arrives from your customer's bank. Ensure that each L/C is correct and valid.
SCB ensures payment on L/Cs under risky conditions. Export anywhere with confidence.