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.
Elimination of the risk of non-payment/delayed payment/partial payment for goods delivered/services rendered
Eliminating the risk of refusal (changing conditions) of the buyer from the order without the consent (permission) of the seller
Ability to increase volumes of supplies, promotion of goods (services) to new markets, gaining competitive advantage
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.)
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)
Trade Finance and Factoring Department