Letters of credit
This an undertaking by one bank to another that a certain amount of money will be paid to another banks when a customer to the initial bank has performed in accordance with the agreement to the client of the latter bank.
What does it offer me?
- In cases where one purchases equipment from overseas, it ensures that goods are paid for on condition that they are of correct specification and have been supplied within the agreed period.
- It eliminates the risk of having to pay for incorrect items and ensures delivery of correct items.
- Avoid the need to pay in advance to suppliers who are unknown to client.
- It ensures that delivery will indeed take place.
- Save costs by way earning interest for funds that would otherwise have been transmitted to supplier before delivery.
What do I need to apply?
- Have an account with us
- Up to date financial information in order to access risk