Our company can help to obtain financing, activate credit line, and provide loans against financial instruments.
Our company is able to offer the most competitive terms when rendering assistance in obtaining the credit financing for both commercial transactions and various business projects.
It is well known that obtaining a credit in all international banks is a very difficult process. It is mostly impossible for the companies that do not have their credit history in a bank. In order to obtain a credit financing for projects our company uses active credit lines of our partners by means of setting-up a "Joint venture" with the client's company.
For this joint venture, we can arrange the secured loan in a short time and at sufficiently flexible terms against the most common international types of financial instruments, such as:
BANK GUARANTEE (BG)
Bank Guarantee (MT- 760) is an irrevocable commitment, which is issued by a bank on behalf of its client who has concluded a contract to buy goods from a seller and promised to meet all financial obligations to the seller in case of default. In other words, a Bank Guarantee is a commitment of a bank on behalf of its client.
Bank Guarantee often helps companies to conduct transactions with parties they usually would never have the chance to deal with. Many suppliers often prefer to do business with clients, which have a Bank Guarantee because it removes the risk that they will not get the proper payment for the goods they sell.
Bank Guarantees can be issued for many purposes, for example, for credit enhancement of institutions that issue industrial development revenue bonds and commercial papers; to provide security for loans granted by third parties; to assure performance under construction or employment contracts; and to ensure the buyer fulfils financial obligations to its suppliers.
STANDBY LETTER OF CREDIT (SBLC)
Standby Letter of Credit /SBLC (MT-760) is a written commitment of a bank that issues it to pay a certain amount of money on behalf of the bank’s client in favor of a beneficiary in case the client/buyer is not able to fulfill its financial obligation to the beneficiary/seller.
Using a Standby LC in business transactions is an indication of good faith and proof of financial credibility and repayment capabilities of a buyer.
Standby Letter of Credit is widely used in commodities trading, when it is necessary to buy the goods from a local supplier or foreign exporter. SBLC can be also used as a security to obtain credit lines and is ideal for company, which plans to expand its business but does not want to utilize its assets.
Standby Letter of Credit should be always issued as an irrevocable financial instrument and cannot be cancelled or revoked since it has been issued & transmitted via authenticated MT-760 SWIFT message by an issuing bank. It is possible to assign a Standby LC to another beneficiary in accordance with written instruction from the first beneficiary. The bank, which performs such transfer has to notify the issuing bank the amount to be transferred and the effective date of the transfer.
Standby Letter of Credit is provided according to the latest uniform rules ICC Publication No. 600.
DOCUMENTARY LETTER OF CREDIT (L/C, DLC)
Letter of credit (Documentary Letter Of Credit (L/C, DLC) is the bank's obligation to pay the seller of goods or services a certain amount of money in the timely submission of documents confirming shipment of goods or performance of contractual services.
Documentary Letter Of Credit is one of the most important means of financing in the international trade, as the letter of credit is a tool that removes most of risks as from the buyer (importer) and from the seller (exporter). Documentary Letter Of Credit is very flexible and convenient tool of calculations, which have the widest recognition and acceptance in the world.
There are the following forms of letter of credit:
Revocable Letters of Credit, which can be changed or canceled by the issuing bank without prior notice to the recipient of funds. Revoke of letter of credit does not create any obligation of the issuing bank to the payee. Nominated bank is obligated to make a payment or other operations on a revocable letter of credit, if at the time of their commission they have not received notice of the change of conditions or canceling credit. A letter of credit is revocable if its text does not explicitly state otherwise.
Irrevocable letter of credit is a firm obligation of the issuing bank to pay money in order and the terms defined by the conditions of the letter of credit, if the documents provided for by it, submitted to the bank specified in the credit. Irrevocable letter of credit guarantees that the exporter will make payment to the performance of its obligations, even if an importer wants to abandon the deal. Therefore, exporter, performing a special order, for which most likely will not be another buyer, chooses exactly this kind of letter of credit.
Irrevocable unconfirmed letter of credit. When making an unconfirmed letter of credit issuing bank, providing a letter of credit, is only party that is responsible for the disbursement to seller. Nominated bank has to pay only after receiving the money from the issuing bank. Nominated bank simply acts on behalf of the bank providing credit, so it does not take any risk.
Irrevocable confirmed letter of credit - the obligation of the issuing bank is confirmed by another bank. Confirmation is an additional guarantee of payment from another bank (Bank of the exporter or prime bank).
Bank, confirming letter of credit is committed to pay for documents according to the conditions of the letter of credit if the issuing bank fails to make the payment.
Currently, LC issuance is governed by the latest version of UCP 600.