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Bank Guarantee and Letter of Credit

Bank Guartantee

Bank Guarantee is a Guarantee issued by a bank in the interest of a customer who has undertaken to purchase goods from a supplier and promises to pay any financial liabilities to the supplier in the event of default.

A letter of guarantee often helps firms manage businesses with other parties they would not have had the opportunity to cooperate with without the security of this bank guarantee.

The client pays a commission for issuing the Letter of Guarantee.

Letter of Credit

Letter of credit is a financial instrument, a form of guarantee provided by a bank that guarantees participants in international trade that payments for goods and / or services are made if certain conditions are met.

Letter of Credit is the obligation of a bank to pay the value of the documents to the beneficiaries if the requested documents are submitted within the validity of the L / C and the documents comply with the terms of the letter of credit. Letter of Credit is a banking mechanism that allows importers to provide safe conditions for exporters and secure trade.

For types and fees of letter of credit and guarantee you are kindly requested to read Terms and Conditions.