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
• Letter of credit irrevocability - The Importer is not allowed without the exporter consent to cancel or change the terms and conditions of a letter of credit
• Possibility of obtaining additional payment guarantees in case of confirmation under a letter of credit
• The ability to receive promptly the export proceeds under a letter of credit provided the reimbursement instructions are stipulated under the letter of credit or post-export financing (Negotiation of documents)
• Chance to increase the number of new trading partners

Terms and Conditions

A foreign economic contract should stipulate settlements using documentary letter of credit. Documentary letter of credit is a world-recognized and most protected form of international settlements. As a payment instrument the letter of credit is advantageous for the exporter, 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 importer, since in this case, the bank effects payment under the letter of credit. This instrument is, by its nature, an obligation of the issuing bank to make a payment subject to fulfillment of all terms and conditions of the letter of credit.

Ukreximbank renders services on opening and servicing export letters of credit of all types and structures and different complexity of the terms and conditions thereof.

Ukreximbank also offers additional services:

• letters of credit confirmation
• letters of credit transfer
• assignment of proceeds under the letters of credit and advising of proceeds thereunder
• use of export letters of credit as trade financing instruments

Export letter of credit is the most preferable option for entering new markets, cooperation with new suppliers. Besides, an export letter of credit may be used as a financing instrument. Ukreximbank provides support to domestic exporters and offers post-export financing services under export letters of credit.