Stand-by letter of credit

We suggest you and instrument of protection against potential international trade risks that joins the advantages of a bank letter of guarantee with the ones of a documentary letter of credit: STAND-BY LETTER OF CREDIT.

This instrument implies a more extensive period for payment. According to the agreement, the importer’s bank is taking over the payment if the exporter can prove that the importing company did not fulfill its obligations.

Advantages:
As the importer, the stand-by letter of credit assures reimbursing of the advance payment by the exporter, in the case of unfulfilling its contractual obligations.

As the exporter you have the guarantee to receive the payment of the value of the delivered good/provided services if the importer does not pay.