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Letters of credit in the national currency

Do you want to be more secured and mitigate risks when making settlements on the domestic market of Ukraine?
Use letters of credit in national currency in your business.
The issuing bank guarantee
Protection of the buyer rights
Business expanding
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The issuing bank guarantee
Payment under the letter of credit is guaranteed by the issuing bank, but not by the buyer, and does not depend on the latter's decision to pay under a letter of credit
Protection of the buyer rights
The payment is made only upon fulfillment by the seller of all obligations related to delivery of goods and submission of documents under a letter of credit; letter of credit irrevocability
Business expanding
Increasing the number of new trading partners

Advantages

  • Payment under the letter of credit is guaranteed by the issuing bank, but not by the importer, and does not depend on the latter's decision to pay under a letter of credit
  • Payment is made only upon fulfillment by the seller of all obligations related to delivery of goods and submission of documents under a letter of credit
  • Letter of credit irrevocability (the buyer is not allowed without the seller consent to cancel or amend the terms and conditions of a letter of credit)
  • Possibility of obtaining additional payment guarantees in case of confirmation under a letter of credit
  • Chance to increase the number of new trading partners

Terms and Conditions

Documentary letter of credit is a world-recognized and most protected form of international settlements. Use of a letter of credit in the domestic trade allows to benefit from all advantages of this instrument.

As a payment instrument the letter of credit is advantageous for the seller, so that upon the shipment of goods and submission of all documents in accordance with the terms and conditions of the letter of credit, it will receive funds regardless of the buyer, since in this case the bank effects payment under the letter of credit.

If you buy goods or services, the use of documentary letter of credit will allow you to protect yourself against the risk of payment in case of failure to deliver the products or to fulfill other terms and conditions provided for under the letter of credit, due to the fact that the letter of credit is an obligation of an issuing bank to make a payment only subject to compliance with all terms and conditions of the letter of credit.