Documentary letters of credit (import/export)

Advantages for Exporter/Seller

• The letters of credit open the doors of the international commerce, offering a secure payment mechanism and the fulfilment of the contractual obligations.
• A bank replaces the buyer as payment source for the exported goods or services.
• The issuing bank undertakes to male the payment, provided all conditions stipulated in the letter of credit to be concordant.
• Financing opportunities, such as pre-sending financing guaranteed with a letter of credit and/or discounting the bills of exchange accepted and drawn based on the letters of credit, are available in several countries.
• The bank has the necessary expertise to support the successful finalisation of the commercial transactions.
• The payment for sent goods can be remitted to your bank or to a bank of your choice.

Advantages for Importer/Buyer

• The payment will be made to the seller only when the terms and conditions of the letter of credit are met.
• The importer can control the sending data for the acquired goods.
• The cash resources are not blocked.

Stand-by letters of credit

Advantages

• Independent instrument (from Contract)
• Documentary Credit
• It can be confirmed (by a third bank)
• It can be transferred (to a secondary beneficiary)
• Requested by the banks in SUA (the letters of guarantee are not accepted)
• It insures the Exporter against the risk of incorrectness or insolvability of the counter party (Importer) and guarantees that the payment will be made based on a written payment request
• It allows to the proxies / agents to execute (to make) the terms of the commercial contract through the transfer of the Stand By letter of credit
• It allows the Exporter to guarantee the transaction by requesting the confirmation of the Stand By letter of credit by a third bank
• The simplicity of the documentation requested in order to make the transaction
• International bank guarantees
• Trade bill guarantee