Letter of Credit Discounting
Advantages
- Fast and easy access to the service the client may obtain the receivables on the same or the following working day as of the Contract conclusion
- Complete elimination of credit risk for the client
- No need for evaluation of the client’s creditworthiness as the risk is against the Issuing bank
Whom is it Suitable for?
- Clients exporting or selling goods and/or services abroad or in the country on L/C terms stipulating deferred payment of 30, 60, 90 etc. days.
How to Apply for the Service?
Please consult our Trade Finance Advisory Unit.
Frequently Asked Questions
By negotiation, up to 100%.
- Discount interest composed by:
- Market Index (EURIBOR/LIBOR);
- Bank risk premium based on the Issuing bank’s risk;
- Transaction risk premium.
- Purchase fee
Yes, if the buyer and seller have agreed on the method of payment by Letter of credit with deferred payment.
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