A conditional monetary obligation of a bank is the making of a payment, following the delivery of bank documents, upon the instruction of the importer to that exporter, not being against the letter of credit (ie the time of the letter of credit, the terms of the letter of credit, insurance and demonstration of the documents). Regulated by the International Uniform Rules The Documentary Credit is applied in all countries of the world, because it gives a guarantee not for domestic rights, but for the most reliable rights. The essence of letters of credit is finding solutions for these three valid issues, to the parties involved in international settlements:
— Payments made on the basis of foreign contracts
— The Bank issues a guarantee to both parties involved in foreign banking transactions
— The possibility of introducing various types of financial transactions in the settlement process
A letter of credit is profitable for you, regardless of who you are: an exporter or importer. Because, If you:
Exporter:
— The guarantee of payment is given, because the responsibility for payment is borne by our Bank
— The payment will be made as soon as possible, after giving us all the documents of the letter of credit
— The letter of credit can be confirmed, thus the obligation of payment is added
— Payment can be made by a bank located in your country
Importer:
— You are given a guarantee that payment will be made only after the seller has fulfilled all obligations
— You can get help from the bank, while determining the documents that should be provided to you on the basis of letters of credit
— Based on the time limit in bank letters of credit, you can demand the release of goods in a certain period of time.
— We give you a guarantee of a thorough inspection of all documents
