It is a guarantee instrument by which the bank, at your order, undertakes to pay an amount of money to the beneficiary, under the conditions of submitting a request for payment in accordance with the terms and conditions of the letter of guarantee.
 

BENEFITS

• ensures protection against commercial risks of non-performance or poor performance of the contract;
• covers the risk of non-payment of the value of the goods sold / services provided;
• ensures the recovery of the advance granted in case of defective performance of the contract;
• reflects the bank's trust in its customer and its transaction.

It is a payment instrument whereby the bank undertakes to pay a sum of money in exchange for the presentation of documents by the exporter / seller, in accordance with the terms and conditions of the letter of credit.

BENEFITS

• assures the importer that the goods will be delivered and paid in accordance with the terms of the contract;
• provide the exporter with security for the receipt of the value of the goods delivered to an unknown trading partner or in a high-risk country;
• enables the exporter to receive the value of the goods delivered in advance, by discounting it to the bank, improving the company's cash flow

It is a payment instrument through which the exporter's bank (also called the sending bank) mediates the sending of commercial / financial documents to the importer. The documents are sent by a collecting bank, in order to issue them to the importer against payment and / or acceptance.

BENEFITS

• history and confidence in the conduct of transactions.
• gives the exporter the certainty that he will collect the value of the shipped goods
• it has a lower cost than the documentary letter of credit