Documentary letter of credit
A documentary letter of credit is a bank's obligation to make a payment to the letter's beneficiary after the latter presents the documents confirming all the conditions set in the letter have been met.
Settling payments by using letters of credit has its advantages. It allows importers to make sure that the specified volume of certain goods is shipped on time and under specific conditions. Exporters have the bank's guarantee that they will receive the payment for their goods, and thus the risks of failure to receive the payment are reduced to the minimum.
Using letters of credit requires more detailed consideration of payment terms for both the buyer and seller. EVROFINANCE MOSNARBANK specialists provide advice at this stage lest the clients should lose all the risk-reducing advantages offered by this way of payment.
EVROFINANCE MOSNARBANK offers a comprehensive set of services related to documentary letters of credit:
- Opening covered and uncovered letters of credit;
- Opening "reserve" (stand by) letters of credit;
- Changing terms of letters of credit;
- Advising export letters of credits and amendments to them;
- Transfer of a transferable letter of credit;
- Acceptance and examination of the beneficiary's documents on advised letters of credit for further forwarding them to the issuer bank to receive payment there;
- Requesting payments on advised letters of credit, placement of export sales revenues;
- Acceptance and examination of documents sent by foreign banks to check if the payment is correct;
- Issuance of reimbursement guarantees;
- Making payments on open letters of credits;
- Discount operations on documentary transactions (discounting bills, drafts, documents under documentary letters of credit);
- Analysis of payment terms and/or drafting letters of credit by clients' requests.
EVROFINANCE MOSNARBANK complies with the effective Uniform Rules for Documentary Credits and Uniform Rules for Bank-to-Bank Reimbursement under Documentary Credits (published by the International Chamber of Commerce), international banking practices and the effective Russian legislation on currency control.