Letter of creditA reliable payment method in trade
Apply nowWhat is a letter of credit?
A letter of credit is a documentary financial instrument that guarantees payment to the seller in international and local trade operations when goods are shipped or services are provided
For the seller
Risk is minimal because payment is not made until goods and documents are presented
For the buyer
The buyer is not forced to pay before the goods are shipped, documents must be submitted
For both seller and buyer
The payment process is based on international rules and provides additional security for both buyer and seller
How does a letter of credit work?
The contract is signed
The buyer applies to the bank to open a letter of credit
Opening of the letter of credit
The bank sends a notification to the supplier that the letter of credit has been opened, also known as advice
The goods are shipped by the supplier
The supplier submits documents confirming shipment of the goods to the bank
Documents are checked and payment is made to the supplier, the letter of credit is executed
The bank transfers the documents to the buyer
Application for a letter of credit
1
Submit the application for a letter of credit
2
Open an account
3
Sign the contract
APPLY FOR A LETTER OF CREDIT
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