Stand-by Letters of Credit

Stand-by Letters of Credit is inherently a bank guarantee with a more protected list of mechanisms that regulate and confirm the authenticity and legitimacy of the requirement.

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Stand-by lettrs of credit #2 | Raiffeisen Bank Aval

Stand-by lettrs of credit #3 | Raiffeisen Bank Aval

The feasibility of using if

The legislation of the country of your counterparty

prohibits the form of payment guarantee

The counterparty requires a settlement form –

a stand-by letter of credit

The benefits of using

for the seller

Stand-by lettrs of credit #4 | Raiffeisen Bank Aval

Eliminating the risk of non-payment

Elimination of the risk of non-payment/delayed payment/partial payment for goods delivered/services rendered

Stand-by lettrs of credit #5 | Raiffeisen Bank Aval

Eliminating the risk of failure

Eliminating the risk of refusal (changing conditions) of the buyer from the order without the consent (permission) of the seller

Stand-by lettrs of credit #6 | Raiffeisen Bank Aval

Increased supply volumes

Ability to increase volumes of supplies, promotion of goods (services) to new markets, gaining competitive advantage

The benefits of using

for the buyer

Stand-by lettrs of credit #7 | Raiffeisen Bank Aval

Reserve letter of credit

A standby letter of credit can be opened at the expense of the buyer's own funds, a bank loan, and also by providing the buyer with other security for meeting its obligations (pledge, deposit, etc.)

Stand-by lettrs of credit #8 | Raiffeisen Bank Aval

The possibility of deferred payment

The buyer has the opportunity to postpone the payment until the relevant documents indicate that the goods are shipped in full and appropriate quality to the specified place (payment is made after the shipment of the goods and the provision of documents)