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Letters of Credit

Leters of Credit are used in international trade to protect the interests of the buyer (customer) of one country and the seller (vendor) located in another country.
A letter of credit is both a means of payment and a guarantee. It protects both parties to a trade agreement: the vendor’s goods are moved only after payment is made, and payment is not made until a set of documents certifying that the ordered goods have been deemed to meet all specifications and quality standards is presented, which protects the buyer.

What are the advantages of using a Letter of Credit?
Guaranteed payment upon presentation of documents certifying the quality and quantity stipulated in the terms of the letter of credit
They reduce the risk of nonpayment if the buyer cancels or changes his or her order
Payment against a product that meets all technical specifications, quality and quantity that the buyer has stipulated in the business contract.
This instrument offers individual responsibility from the buyer’s part but also banks to perform the payment, upon presentation of complete and accurate documents by the recipient of the letter of credit.

To learn more about the terms and conditions of Letters of Credit, please visit our Terms and Conditions.
You can apply for this service by filling out our web application. After the application has been reviewed, you will be contacted by one of our business advisers for the following steps.

 

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