For Corporate Clients

Advantages and types of Letter of Credit
1. For Importer/Buyer/Applicant
  • Reasonable cost of funding
  • Financing of up to 100pct of contract value
  • Easier to do business with unknown sellers
  • No payment is made until documentary evidence is received showing shipment details
  •  Documents are examined in compliance with International Chamber of Commerce rules and the terms of the L/C
  • Preservation of acting discounts of suppliers
 
2. For Exporter/Seller/Beneficiary
  • Certainty of payment if documents are submitted in the form prescribed by the LC
  • Financial standing of the buyer is replaced by the issuing bank
  • In case of confirmed LC, additional assurance from the Confirming bank
Types of Letters of Credit 

 

  • REVOLVING LC, which amount is renewed/recovered without the necessity to make substantial changes in the terms and conditions of the L/C.
  • TRANSFERABLE LC entitles the beneficiary to request the bank to transfer, fully or partially, the Letter of Credit to one or more secondary beneficiaries.
  • BACK - TO - BACK LC is LC issued against another issued LC.
  • STANDBY LC is a bank guarantee issued in the form of a Letter of Credit.to cover a possible default of non-performance
  • RED/GREEN CLAUSE LC includes a special clause, authorising the nominated bank to pay advance to the beneficiary, prior to shipment.

Updated 23.08.2019, 9:49

Services for Corporate Clients

HEAD OFFICE

2 Vazgen Sargsyan Street, Yerevan 0010,RA

Tel.: +37410 56 11 11

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+1 888 802 5352

UK:

+448000903191

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