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Letter of credit


What is a Letter of credit

A letter of credit is a payment instrument issued from a Bank, in name and on the account of the applicant (Importer), to assure the payment to the beneficiary (Exporter) of goods and services. A Stand by letter of credit allows the exporter to collect payment from the Bank if the Bank’s customer does not pay according to the original terms and conditions.


Why discounting without recourse of the letter of credit

  • Eliminates Risk:
    • Removes political,transfer and commercial risk;
    • Protects against risk of interest rate increase and exchange rate fluctuation.
  • Improves Cash Flow:
    • Provides Financing for 100% of deferred amount;
    • Enables exporters to receive cash payment while offering credit terms to their clients;
    • Acts as additional source of funding and hence does not have any impact on the Exporter’s borrowing limits.
  • Increases Speed and Simplicity of Transactions:
    • Financing commitments can be issued quickly;
    • Documentation is typically concise and straightforward;
    • Relieves the Exporter of administration and collection burden.


Our services

We search at international level the best solutions for payment without recourse at short, medium and long term represented by letters of credit. We provide to the release, by international banks, of “silent confirmation” on letters of credit with payment against presentation of documents.