Discounting of a letter of credit is a post export financing transaction (without recourse) for the exporter; the bank buys the value of the documents presented in conform to a Letter of Credit with deferred payment terms and make payment to the exporter’s account before maturity.
What conditions are required for discounting of a letter of credit?
Request to the Buyer payment terms by Letter of Credit with deferred payment terms, issued or confirmed the Letter of Credit discounting and receive money before maturity.
- You may collect the receivable before the maturity date
- You can propose goods and services with payment after delivery
- You receive financing in the amount of up to 100% of the value of the letter of credit
- You benefit from a fast and simple process:
- No mortgage, credit agreements or thorough analysis of exporter’s financial condition
- You gain the reputation of a trustworthy partner that can offer extended payment terms to its clients