Main / Letters of credit
You need to provide reliable estimates at national and international transactions? You want to protect yourself and your partners from possible issues of non-payment or non-delivery of goods, currency and other risks?.
Want to sign a contract with a foreign partner?
Required to ensure the timely delivery of the goods or the payment of your company?
Then You need to open a letter of credit!
When using letters of credit our clients gain confidence in the delivery of goods/services, and their partners – in payment.
The letter of credit is an independent obligation of the Bank to pay a sum of money in favor of a third party after receipt of the documents corresponding to conditions of the credit. A letter of credit is one of the most equitable forms of payments, ensuring the balance of interests of both parties under the contract.
Advantages of letters of credit
In international practice, the term "trade Finance" (eng. Trade finance) associated with international trade. Trade finance can be translated into the Russian language as "international settlements (settlements of international trade operations)".In the Russian practice the trade Finance instruments are classified in four directions of use:
1. Trade financing within the country: forfeiting (eng. forfaiting from FR. à forfait — entire, total), promissory notes. Wechsel), guarantees and letters of credit of banking institutions.
2. Financing of import: the loan guaranteed by the buyer's Bank, a loan from a foreign Bank under the insurance coverage of export credit Agency, credit from the supplier under the insurance coverage of export credit agencies, loan from a foreign Bank to the buyer.
3. Exports financing:forfeiting (eng. forfaiting from FR. à forfait — entire, total), international factoring. Calculations on international trade (international settlements). Covered and uncovered Bank credit. Here Bank credit is used to reduce the commercial risks of delivery (non-delivery of goods, failure to return payment, etc.).