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Trade finance

Letter of Guarantee (LG)

• LG is a means provided by the bank to Clients to ensure fulfilling their commitments to a certain beneficiary.
• Client provides the Bank with collateral for issuing the LG.
• Bank undertakes to pay the beneficiary a specific sum of money during a specific period of time on demand and on behalf of the Client if the client fails to fulfil his contractual obligations.

LG Type ( Bid Bond, Performance Bond, Advanced Payment)

Letter of Credit (LC)

• LC is a method of payment for goods and services.
• LC is issued by a Bank in favour of a beneficiary
• Client will provide the bank with collateral
• Bank substitutes its own credit worthiness for that of the applicant (Client)

Documentary Bills for collection

• It means handling of commercial documents by a bank in accordance with exporter’s instructions to hand them over to the importer.
• The Exporter submits collection documents with complete and clear collection instructions to the Bank.
• The bank liability in a documentary collection is limited to the tasks of forwarding and releasing documents against payment or acceptance

For any information on these products, contact us.