Highlight your competitive advantage with Altyn Bank and make sure that your partner fulfills the contractual terms of quality, quantity and delivery times before paying for the imported goods.
Our specialists will offer you a qualified examination of contracts using letters of credit in order to minimize risks and meet the interests of both the buyer and the seller.
Documentary letter of credit is an irrevocable obligation of the issuing bank to pay the seller against the provision of documents that meet the conditions of the letter of credit.
Benefits for importers:
- Minimization of risks when working with new counterparties, i.e. payment for goods is made only against documents confirming the shipment of the goods in compliance with the terms of shipment, quality and quantity of goods;
- Possibility of further financing, i.e. payment on letter of credit at the expense of the loan;
- For letters of credit with deferred payment, the importer makes payment for the goods after they have been sold in the domestic market.
Advantages for exporters:
- Financial obligation of the issuing bank;
- Reducing the political, economic and other risks of foreign trade;
- Access to cheaper monetary funds immediately after shipment of goods, regardless of whether you provide a commodity credit to your partner or not;
- Revenue without delay, the minimum risk of refusal to pay for a letter of credit by the issuing bank;
- Possibility of transfer of a letter of credit in favor of your supplier, if you are an intermediary for a trade transaction;
- Under 100% cash in a currency and amount equal to the currency and the amount of the documentary letter of credit;
- Within the credit line (collateral)