Why do you need a letter of credit? Tips to the entrepreneur. Letterred: what is this simple language

Application accredit form of calculations Parties in any transaction allows reduce your risks as much as possible: Buyer guarantees receipt of goods (works, services), seller - timely arrival money on his current account.

With such calculations, the Bank undertakes to make payments in favor of the recipient of funds when submitting latest documentscorresponding to all the conditions of the letter of credit.

Thus, in the calculations on the letter of credit, the following parties are:

buyer (payer);
bank-issuer (payer's bank) - opens a letter of credit;
seller (recipient of money);
the executing bank (Bank of the Seller) - executes a letter of credit.

Bank-issuer, recipient bank or other bank can be played as an executing bank.

JSC "NS Bank" offers preferential tariffs for servicing letters of credit in the event of combining the functions of the bank-issuer and the executing bank.

In practice, letters of credit are opened - covered, irrevocable, with or without acceptance. When opening covered letter of credit The issuer bank lists the amount of the letter of credit (coverage) due to the payment of the payer (or the loan provided to him) at the disposal of the executing bank for the entire validity of the letter of credit. Irrevocable A letter of credit is recognized that cannot be canceled without the consent of the recipient of funds.

Briefly document, when calculating a letter of credit, can be represented as follows:

1. The buyer (payer) and the seller conclude an agreement in which it is indicated that the calculations on it will be carried out using a letter of credit. The letter of credit is designed for calculations with one recipient of funds. The following details and conditions must be specified in the concluded between the buyer and supplier of the contract.

name of the bank-issuer;
name of a bank serving recipient of funds;
name of recipient of funds;
amount of letter of credit;
type of letter of credit;
the method of notifying the recipient of funds about the opening of the letter of credit;
a way to notify an organization about the account number for deposit of funds opened by the executing bank;
full list and accurate characteristics of documents submitted by the recipient of funds;
validity of the letter of credit;
deadline for submission of documents confirming the fulfillment of the conditions of the letter of credit;
payment condition (with acceptance or without acceptance);
responsibility for non-performance (improper performance) of obligations.

Other conditions relating to the procedure for calculations on the letter of credit may also be included in the main contract.

2. The payer addresses the bank-issuer with which the agreement concludes and provides an application for the opening of the letter of credit. The bank requests an account for paying a letter of credit in the executive bank and reports its payer.

3. The issuer bank lists the amount of the letter of credit into the executing bank. The executing bank notifies the seller (recipient) about the receipt of money. The recipient cannot dispose of these money.

4. On the opening of the letter of credit and its terms, the bank-issuer informs the recipient through the executing bank.

5. The next step is the disclosure of the letter of credit. The Seller fulfills the terms of the contract and presents the executing bank documents confirming the implementation of the contract, as well as four copies of the registry of the form of form 0401065 (Appendix 21 to the Regulation 2-P). The bank checks these documents and, if everything is in order with them, credits the amount of the letter of credit to the payroll account.

The letter of credit is made in non-cash by transferring the amount of the letter of credit to the recipient's account. Partial payments on the letter of credit are allowed.

The supplier receives and money only after documents confirming the execution of all the conditions of the letter of credit under the time limits.

The letter of credit is the instruction of the payer of the recipient bank

Accreditative - This is the instruction of the payer's bank, the Bank of the Recipient of the Funds, to produce by order and at the expense of the Customer's funds to the physical or legal entity within the limits of the amount indicated and on the conditions specified in this order.

When establishing new partnerships between enterprises and organizations, individuals and individual entrepreneurs Often the question arises: how to avoid the loss of money or product, when concluding a deal and settlements with another unfamiliar company? How to inspire your business from optional and dishonest partners, especially if the contract is to a considerable amount? The answer is simple - apply when calculating letters of credit. Of course, it is rather difficult to explore all the subtleties of work with letters of credit and apply them in the calculations, but it appears a sense of security. And having studied the accreditation form of calculations once, customers from it are rarely refused. So, the calculation of the letter of credit is carried out under the control of two banks and excludes non-fulfillment of the conditions under contracts concluded, both from the supplier of products and the buyer.
Accreditative - This is the safest form of calculations between customers. There was a case in my practice when most consumers of caustic soda are the largest chemical plant, switched to calculations with him through the letter of credit. At that time, Himzavod, being the only one in the post-Soviet space by the manufacturer of caustic soda, was on the grain of bankruptcy, but continued to work and ship products. The enrollment of money for the current account with the letter of credit entered into the bank was carried out by the bank after shipment of products and submissions to the bank of all shipping documents in accordance with the contract and the instruction of the payer. All documents were carefully checked. The letter of credit gave confidence to consumers (payers) is that if the products are set time It will not be shipped, the means without problems and delays will be returned by the bank. And the plant, being in " financial Name"It was confident that he would not throw him without paying the next consumer.

Accreditative - this is estimated document, on paper, on the basis of which the bank acting on the instructions of the payer on the opening of the letter of credit (hereinafter - the Emitted Bank) undertakes to make payments in favor of the recipient of funds for submitting the latest documents that meet all the conditions of the letter of credit, or provide the authority to another bank (hereinafter - The executing bank) make such payments.

Cashless calculations with letters of credit are carried out on the basis of the following regulatory acts:

Position of the Central Bank of the Russian Federation of October 03 of October 2002 N 2 - "Regulations on non-cash settlements in the Russian Federation"

Position of the Central Bank of the Russian Federation of April 1, 2003 N 222-P - "Regulations on the procedure for the implementation of non-cash settlements by individuals in the Russian Federation"

Civil Code of the Russian Federation (Civil Code of the Russian Federation) dated January 26, 1996 N 14-FZ - Part 2 of Article 867 - 873

Types of letters of credit

When calculating letters of credit, it is very important to choose the right view of the letter of credit. The opening of the letter of credit is carried out by banks on the instructions of the payer, therefore, the type of letter of credit, as a rule, offers a payer in the draft contract.

In accordance with the provisions Central Bank RF Banks can open the following types of letters of credit:

covered (deposited) letter of credit;
uncovered (guaranteed) letter of credit;
reval information credit;
irrevocable letter of credit;
confirmed letter of credit (revaluable or irrevocable).

Covered letter of credit (deposited) - This is when when opening a letter of credit, the Issuer is transferred at the expense of the payer's payer amount of the letter of credit (coating) at the disposal of the executing bank for the entire validity period of the letter of credit.

Uncovered letter of credit (guaranteed) - This is when, when opening a letter of credit, the bank - the issuer does not list, but gives the executing bank the right to write off funds from his correspondent account within the amount of the letter of credit. The procedure for writing off funds from a correspondent account of the Bank - Issuer for a guaranteed letter of credit is determined by agreement between banks.

Review accredited - This is a letter of credit, which can be changed or canceled by the bank - the issuer on the basis of the written order of the payer without prior approval with the recipient of funds and without any obligations of the bank - the Issuer in front of the recipient of funds after the letter of credit.

Irrevocable accreditation - This is a letter of credit, which can be canceled only from the moment of receipt by the execution of the recipient of the recipient to changes in conditions. Partial adoption of changes in the conditions of an irrevocable letter of credit by the recipient of funds is not allowed.

Confirmed letter of credit (review or irrevocable) - ZTO letter of credit, in which the executing bank assumes the obligation to make the payment specified in it, regardless of the receipt of funds from the bank, where the confirmed letter of credit was opened. The procedure for confirmation is determined by agreement between banks.

Currently there are several more types of letters of credit, as it were, as far as species described above:

Letter of credit with a red reservation - This is a letter of credit, according to which the Issuer Bank authorizes the executing bank to make an advance payment to the supplier of goods (beneficiaries - the beneficiary of funds) in a specific agreed amount until all trade documents are submitted to them, that is, before shipment of goods or the provision of services.
Revolving accreditation - this is a letter of credit discovering from payments from total amount According to the contract, automatically renewed as calculations for the next batch of goods. The revolving letter of credit opens with uniform supplies stretched in time, with the aim of cyclical reduction of the contract amount.

The recipient of funds by letter of credit can abandon the use of a letter of credit until its expiration, if the possibility of such a failure is provided for by the terms of the letter of credit. In addition, the terms of the letter of credit may be provided by the acceptance of the person authorized by the fellowship.

Calculations of letters of credit

The implementation of non-cash payments for the services rendered, the supply of goods or execution of work is prescribed in contracts, the form of calculations is also prescribed there.
When applying the accreditation form of calculation, the following conditions are necessarily reflected in the contract:

name of the Bank - Issuer,
name of the Bank serving the recipient of funds
name of the recipient of funds
the amount of the letter of credit
type of letter of credit
the method of notifying the recipient of funds about the opening of the letter of credit,
the method of notifying the payer about the account number to deposit funds opened by the executing bank,
validity of the letter of credit, submission of documents confirming the supply of goods (performance, service, and the requirements for the design of these documents;
payment terms (with acceptance or without acceptance);
responsibility for non-performance (improper performance) of obligations.

The agreement may also include other conditions relating to the procedure for calculating the letter of credit. For example, partial payments of the letter of credit are allowed.

The letter of credit is made in non-cash by transferring the amount of the letter of credit to the recipient's account.

And the most important thing is that for violations made in the execution of the accreditation form of settlements, banks are responsible in accordance with the legislation. Considering this, it becomes clear that the executors bank is not profitable to take underestimated documents confirming the delivery of goods, performing work or the provision of the service.

An important point in the sale transaction is the method of calculating between the parties. To avoid possible risks, the seller and the buyer often refer to the accreditation system of calculation. It does not matter, pays for own or mortgage funds.

What is a letter of credit with simple words

The letter of credit is another way of non-cash calculation, which can be used by the parties to the contract of sale, supply, etc. Simple words, letter of credit is financial instrumentoffered by banks associated with the calculation control between the seller and the buyer. The bank acts as a guarantor of the commission of a fair deal, issues cash only subject to contractual obligations between participants. For the period of the transaction, the money is stored in a special bank account.

Accreditation scheme

Two credit organizations can take part in such transactions: the issuer bank and the executive bank. The issuer's bank opens a letter of credit on the basis of the statement of its client and undertakes to make a transfer in favor of its counterparty under the contract. This is transferred to the executable bank. Such an order is possible only after documentary confirmation of the implementation of all agreements on the transaction. The listing occurs on the basis of the order of the Bank's customer to translate funds to a third party. Benefits Services:

Cashless payment. There is no need to carry a large amount with you to recalculate and check for authenticity.
The operation is safe. The sides are not risking. The seller is guaranteed to transfer the full amount of funds after the terms of the contract. For the buyer, this is an opportunity to purchase an apartment or other real estate and not lose money. Also return the cash fully in violation of the conditions from the seller or termination of the agreement.

For the seller, the documentary letter of credit is an additional guarantee from the bank in the receipt of funds under the contract as soon as it fulfills all the conditions. And the buyer is confident that money will be listed after the provision of documents named in the statement.

Required actions for the application of the service

Participants in the transaction conclude an agreement where all the conditions and circumstances of the duties are prescribed in detail.
The Bank includes an agreement on the calculation using the letter of credit. Must be indicated by personal and passport data of both parties. Cash payment conditions.
After signing banking contract The buyer issues an application for a letter of credit.
Checking the documents, an employee of the bank opens an account in the name of the buyer. It fully credits funds for real estate, product, services. Subsequently, they will be listed by the correspondent to the account, bank card Or issued in cash.
Listing the seller will occur after the transaction is completed. He must submit to the Bank documents confirming the registration of the purchase and sale agreement and the transfer of ownership.

The accrediting contract fully regulates the relations of participants. It must contain all the necessary information for the transaction:

data buyer and seller. For individuals - these are data of passport, name, address of residence. With the participation of the organization, the name, INN, address, account details are indicated;
the guaranteed amount of funds posted on the bank account;
period of fulfillment of obligations;
the size banking Commission and the cost of additional services;
the procedure for transferring money after the fulfillment of the terms and provision of documents;
the procedure for the case of unforeseen circumstances, deferences of debt, etc.;
the rights and obligations of the parties to the transaction.

After signing the Agreement in the Bank, a special account opens to reserve money. To open an account, the client writes a statement with a mandatory indication of the following data:

data of contract for sale - number, place and date of signing;
requisites of the seller of real estate, supplier of goods;
view of the account, the amount placed on it and its period;
method of transferring funds;
information about the property, products, works, etc.;
details of the bank of the contractor;
list of documents required for the execution of payment in favor of the seller

Variety of services

Due to the various conditions of the transaction or change circumstances, its participants can be used different types and features of the accreditation system of calculations:

An irrevocable letter of credit is a condition in which the obligation is canceled by the buyer only with the consent of the Seller. It is recognized as the most reliable way to carry out a transaction. Termination banking services Perhaps only with bilateral refusal. With a response service, the Bank has the right to change the obligation or cancel without consent, notification of the recipient.
Deposited letter of credit is the right of the bank to write off the client's own and credit funds at their disposal for the period of the calculation. Otherwise, such a service is called a plated letter of credit. When the executing bank is participating in the calculations, money can be listed on his account, for the entire validity of the agreement with the Bank.
Obligation with the Red Reservation - the Bank's right to transfer the powers to pay another credit organization.
The uncovered letter of credit is the possibility of a bank of the Contractor to write off the money from the buyer's account or take advantage of them in any other way. Such an obligation is considered guaranteed. The executing organization is given the right to write off the finance with the Issuer's correspondent account.
A confirmed commitment is a guarantee of receipt of money from a bank in the amount provided for in the contract. And for the seller, the fact of receipt of funds from the buyer does not matter. Usually takes place when lending.
A bargrate letter of credit is the opportunity to get money without the participation of the buyer. After the end of the transaction, only the seller can appeal to the bank.
Revolving. Opens on an incomplete amount. As the buyer is executed, makes money parts. Such an obligation is convenient when purchasing goods on schedule.
Spare. The seller receives an additional guarantee of payment execution from the bank. It is convenient if the buyer is not possible or refusing to fully deposit payment.

Purchase an apartment through the letter of credit

This transaction is largely similar to the purchase of real estate through bank cell. However, the use of the safe is more simple way With less control from the bank. Considering the topic that such a letter of credit in the bank when buying an apartment, it is worth keeping in mind the purchase of an apartment on the primary or secondary market. In the first case, the housing can be purchased in the house under construction. When calculations with the developer are carried out through a letter of credit, the buyer receives a guarantee to become the owner of the apartment in a terraced house. The developer will be able to receive cash only after the completion of the construction and commissioning of the house.

The reliability of this method of calculations is related to the combined value of the Bank's services. On average, when making a transaction will have to pay:

0.2% of the cost of an apartment prescribed in the contract. Minimum payment equal to 1000 rubles.
with the participation of other financial institutions The Commission will be 0.3% in redistribution from 1500 to 10,000 rubles;
2000-5000 rubles for serving the transaction;
changing the terms of the contract for timing and amount will cost 1000 to 4500 rubles.

The service is provided individuals. The statement indicates:

amount under the contract;
the type and term of the letter of credit;
data on the sides of the calculation;
paying payment;
list of documents for transferring the transfer by the Bank.

In addition to the implementation of the apartment, financial obligation can be used on transactions with another not movable property (at home, land, parking places), expensive driving property (equipment, furniture or art items). The service is convenient when paying for services: construction, repair.

The letter of credit is drawn up in rubles. The term is established by the buyer and stipulates in the application. If a mortgage transaction passes, then on average, the banks are installed in 120 days. Extension is allowed, but not more than 60 days.

An important step is to monitor documents and issuing money. In other words, the disclosure of the letter of credit is the fact of confirmation of the execution of the agreement by the Seller. The bank considers and checks the submitted documents for approximately within a week. Such a bank service enters the scope of the accredidence and can be paid additionally. With positive results of control, the credit organization discloses a letter of credit. The former owner receives the right to pick up money for the apartment. Usually they are listed to him.

Some banks may establish restrictions and terms for receiving money. So, in Sberbank for the issuance of cash, 1% of the amount is charged. With the amount of the transaction more than 5 million rubles, funds must be in account 1 month. If the seller takes a means earlier, 10% will be calculated from it.

With the acceptance with the acceptance, the issuance of money is possible after confirming the buyer of its conditions. The buyer in writing informs the bank on compliance with all the requirements of the agreement. For violations of the calculation process, credit institutions are responsible. Therefore, banks are beneficial to take only true documents. It is worth taken into account:

the bank is not responsible for establishing the compliance of the items of the main agreement between the parties to the Accreditation Agreement;
the bank does not really control the execution of the main transaction (the actual transfer of property, the liberation of the apartment by the seller, etc.).

At the end of the deadline for the obligation and non-treatment of specified documents from the seller, the letter of credit is closed. The recipient of the money is notified of this bank necessarily.

Accredit transaction transactions

Transactions with letters of credit can be carried out in different versions, depending on the credit institution. Usually banks carry out the following operations:

So, the calculation system when buying a property in a letter of credit is a reliable guarantee of compliance with the terms of the agreement. Long-term deadlines, money payments and costs justify the risks that participants in large amounts are subjected.

How to ensure the security of the transaction when working with new partners? Get inexpensive financing when purchasing equipment and lack of security? And the acquisition of real estate? This procedure can also be significantly simplified and will not allow not to lose their money, avoiding the tricks of deceivers and unclean to the hand of realtors. Can I do this? The answer is simple - the accredit form of calculations.

What is a letter of credit?

The generally accepted definition of a letter of credit is the commissioning of the payer's bank, the Bank of the Recipient of the Funds, to be done by order and at the expense of the Customer's payments to the physical or legal entity within the indicated amount and on the conditions specified on the assignment. The calculation of one letter of credit is carried out only with one recipient of funds.

Brief terminology used in the accreditation form of calculations:

Payer - He is the order, the principal is a person, on the basis of the order of which the payment of a letter of credit is carried out.

Beneficiary - Recipient of funds in credit.
Bank-Issient - The Bank, which issues a financial obligation, in this case - a letter of credit.
Executing bank - The bank appointed by the Issuer Bank in accordance with the instructions of the order, execute the letter of credit. The executing bank can act as a bank issuer and any advantage of the bank. In cases of presence in the transaction of a supporting bank, the execution of a letter of credit is usually given to him.
Confirming Bank - As a rule, a first-class bank that makes committed to make a payment specified in the letter of credit regardless of the receipt of the issuer's funds, the presence of a supporting bank in the transaction structure increases its reliability and payment guarantee. In Russian practice, confirmation by a foreign bank is required in most cases.

There are four main types of letters of credit:

Covered letter of credit (deposited) - When, when opening a letter of credit, the Issuer is transferred at the expense of the payer or the loan provided for these purposes the amount of the letter of credit (coverage) at the disposal of the executing bank for the entire validity period of the letter of credit.
Uncovered letter of credit (guaranteed) - This is when, when opening a letter of credit, the bank - the issuer does not list, but gives the executing bank the right to write off funds from his correspondent account within the amount of the letter of credit. The procedure for writing off funds from a correspondent account of the Bank - Issuer for a guaranteed letter of credit is determined by agreement between banks.
Review accreditation - This is a letter of credit, which can be changed or canceled by the bank - the issuer on the basis of the written order of the payer without prior approval with the recipient of funds and without any obligations of the bank - the Issuer in front of the recipient of funds after the letter of credit.
Irrevocable accreditation - This is a letter of credit that can be canceled only with the consent of the recipient of funds. An irrevocable confirmed letter of credit, this is when at the request of the bank - the Issuer, the executing bank can confirm an irrevocable letter of credit, and such a letter of credit cannot be changed or canceled without the consent of the executing bank. The procedure for confirmation on an irrevocable confirmed letter of credit is determined by agreement between banks.

As a rule, in the practice of Russian banks, there are usually covered by irrevocable letters of credit. In more detail about the types of letters of credit, you can learn from open sources, each of these species has a certain specificity associated with a feature of the transaction.

The standard scheme of using the letter of credit is as follows:

The seller and the buyer conclude a contract (contract of purchase / sale, equipment supply, service provisions), the terms of which provides for the form of settlements through the letter of credit and the conditions for its disclosure
The buyer submits a copy of the contract and application to the bank. The bank opens a letter of credit on the basis of the documents submitted. If necessary, the letter of credit is confirmed by the Bank of the Seller or any Bank, the requirements for which are provided for by the contract.
When opening a letter of credit, a coating is formed by either at the expense of the client, or at the expense of the credit line provided by the Customer by the Issuer Bank or another Bank, incl. Foreign.
The seller ships the goods, sends documents on the basis of which the letter of credit is published and receives payment.
The buyer receives documents and goods.

As can be seen, the scheme is simple and obvious - on the one hand, the supplier sees the letter of credit, which is a guarantee of payment, in accordance with the delivery of the terms of the contract, with another buyer does not risks its money, as in the case of a prepayment of an unknown counterparty, while the bank is the guarantor of the transaction By checking her cleanliness.

But, as they say, there is a nuance.

Firstly, The contract must contain the following clear parameters:

name of the Bank - Issuer,
name of the Bank serving the recipient of funds
name of the recipient of funds
name of the executing bank
the amount of the letter of credit
type of letter of credit
the method of notifying the recipient of funds about the opening of the letter of credit,
the method of notifying the payer about the account number to deposit funds opened by the executing bank,
the validity of the letter of credit,
a period of submission of documents confirming the supply of goods (performance, service provision), and the requirements for the design of these documents, as well as their list and characteristics,
the name of goods (works, services), to pay for which the letter of credit is discovered, the term of cargo transportation of goods, the deadline for the shipment of goods (performance, service provision), the shipper, consignee, the destination of the cargo,
payment terms (with acceptance or without acceptance);
responsibility for non-performance (improper performance) of obligations

Secondly, It is recommended to clarify where the Bank will be made of authentication / compliance, submitted documents, as this can significantly delay the payment timing due to the time costs for sending documents.

And most importantly - the formation of the coating on the letter of credit. As mentioned above, it can be formed from two sources:

payer
bank funds, i.e. Due to credit fundssubmitted by the payer's bank.

First option It is used in most cases in credentials with payment upon presentation.

Second option It is advisable to use with this form of calculations as a letter of credit with postfinancing, as a rule, this species The letter of credit is used in long transactions and allows you to attract an inexpensive financial resource for long terms (over three years), for example, the acquisition of equipment.

The procedure for designing this letter of credit is also good in that funding can be obtained at a formal pledge, since the main pledge will be acquired by the acquired equipment. The credit scheme with this form of calculations is as follows:

The contract for the supply of equipment, the terms of the contract and the letter of credit are coordinated with the Issuer Bank.
The bank-issuer provides an application for a letter of credit and signed credit contract For the purpose of forming a coverage on a letter of credit and a deposit agreement
The Issuer Bank conducts coordination of the transaction and opening a letter of credit in a foreign funding bank
Foreign bank confirms and advise the letter of credit supplier.
The supplier delivers, submitted documents specified in the contract for the purpose of disclosure of the letter of credit
After checking the authenticity of documents and compliance with the conditions of the letter of credit, foreign bank makes payment to the supplier at the same time opening credit line The bank-issuer, which in turn reverses it to the buyer.

As a rule, such funding is carried out for a period of 2 to 7 years, the standard is 5 years old with the line of line 3 + 2. When financing for a longer period, it is necessary to attract an export credit agency (ECA). EKA is state financial institutions that provide guarantees or insurance at state support In favor of national companies intend to export goods and services abroad. ECA guarantee or insure long-term (investment) loans provided by national banks to issuers (in our case Russian), on contracts for the purchase of Russian importers technological equipment, transport facilities, installation, commissioning and approval and other services by specialists of these countries.

Basic conditions with this form of resource attracting:

Credit period - from 2 to 7 years
Amount - has minimum value In each bank, your threshold, and, as a rule, no more than 80-85% of the cost of the contract
The interest rate is defined as the sum of the following values \u200b\u200b- LIBOR / EURIBOR (6 months), the Margin of the Bank-Issuer (%% per annum), the cost of financing a foreign bank. Additionally charged insurance premium Eca, which is calculated from the loan amount and must be paid before the loan is received. At the request of the client, the ECA insurance premium can be financed. In this case, the loan provided to pay for the ECA insurance premium is repaid together with the amount of the principal debt on similar conditions. In general, the rate rarely exceeds - 10/11% per annum in currency and can be fixed for the entire period after the sample of the loan in coordination with the Issuer Bank and the Financing Bank
Payment of interest - monthly
The repayment of the principal debt is carried out equal to semi-annual tranches, the first repayment 6 months after the agreed date, which is determined in accordance with the terms of the contract and the project itself, for example, the shipping date or the date of commissioning equipment.

The advantages of the accreditation form of calculations are obvious:

Buyer, guaranteed to be protected from the risks of non-receipt of paid goods, because The executing bank will pay only those documents that will comply with the conditions of the letter of credit.
The seller, fulfilling its obligations to the buyer in a timely manner and submitting documents to the bank to the Bank, the documents are guaranteed to pay regardless of the buyer.
The buyer reduces the risk of violation by the seller of the delivery time or provision of services, because The bank will not pay documents indicating a violation of such deadlines.
In cases where the seller disrupts the delivery time and / or provision of services, the payment is made by the buyer.
In cases where documents submitted by the seller do not comply with the conditions of the letter of credit, the bank will not pay such documents without having the consent of the buyer.
Banks Okhotny finance a deal if a letter of credit is used as a form of calculations, because Fully excluded the possibility of not targeted use of funds.
Lending to foreign trade transactions using documentary forms, the so-called trade financinghas lower interest ratesbecause Such operations are less costly for banks both in relation to sources of funds used for such financing and in terms of risks.