A universal bank instrument used to secure transactions and which can be used the world over. A Bank guarantee is created by written declaration by the bank that it will satisfy a creditor up to a certain financial amount if the debtor fails to meet a certain obligation or if other conditions as stipulated in the letter of guarantee are not met.
Assures the seller that submitted documents, and in the case of documents of title also goods, will not be released to the buyer without the collection conditions having been met. Used for most countries around the world.
A specific loan, which is provided by the exporter’s bank to a foreign buyer. The loan is usually provided up to the level of 85% of the value of the commercial contract concluded between the exporter and the foreign buyer.
One of the most sophisticated payment and security instruments. The Documentary letter of credit offers high quality payment security for both parties to the commercial transaction – the seller and the buyer.