A letter of credit is a pledge that ProCredit Bank usually takes over at the request of one of its clients to pay a named beneficiary a specified amount of cash. If you are dealing with import or export activities, letter of credit from ProCredi can help, you avoid any potential risk of default by your business partner.
The business partner from whom you have ordered the goods must meet all the conditions specified in the letter of credit so that he/she accepts the payment. In the letter of credit, you and your partner can specify details such as:
- Last date when goods can be shipped
- Quantity of goods
- Quality and other specifications of the goods
In this way you ensure that you can accept the ordered merchandise according to your requirements.
The types of letter of credit we offer are:
- Irrevocable Letter of Credit - means that the loan cannot be changed or cancelled without the agreement of all parties (beneficiaries, applicants and the bank).
- Approved Credit Card Standby - acts as a bank guarantee by the issuing bank to the external beneficiary of the non-fulfilment of the obligation by the client (applicant).
- Letter of Export Credit - is a guarantee for the exporter, which will be paid upon delivery of goods and services as per the request / decision in the sales contract.
- Letter of Credit Payable by Presentation of Documents means that the importer of goods must pay the value stated in the documents when presenting the documents to his bank (issuing bank of the letter of credit) if the documents are in accordance with the terms of the letter of credit .
- Defferred Payment Letter of Credit means that the importer of the goods must pay the value stated in the documents on the day as determined in the terms of the issued letter of credit.
- Unconfirmed Letter of Credit - issued, guided and worked directly by the importer's bank.
- A Confirmed Letter of Credit - is issued, guided and worked by another bank which is included in this type of letter of credit on the basis of the agreement or requirements of the importer and the exporter and based on the reports issued by the issuing bank with the bank selected for confirmation of the letter of credit.
- Transferable Letter of Credit - allows the first beneficiary of the letter of credit to act as a mediator and transfer his/her rights from the letter of credit to the seller of the goods.