Аккредитив

Letter of credit Osoba Vasilina bd-34

A letter of credit is a special settlement scheme between a seller and a buyer, in which money for goods is transferred to the seller not directly, but through the mediation of credit institutions.

When a letter of credit is used: 1. Large transactions between individuals 2. Transactions between legal entities within Russia 3. Foreign trade, import-export operations

Types of letters of credit 1. Revocable or irrevocable 2. Covered (deposited) and uncovered (guaranteed) 3. Confirmed and unconfirmed 4. Cumulative and non-cumulative

Positive 1.Payments via L/C are transparent and safe for both the seller and the buyer; 2.A letter of credit can be opened in almost any bank and branch; 3.The letter of credit can be issued quickly. Banks in Russia have been working with letters of credit for a long time, so they have established a scheme of interaction with customers, it can often be issued online and in the bank's mobile application; 4.When opening a letter of credit, the personal presence of the seller is not required.

Minuses 1.Letters of credit are not included in the state deposit insurance system; 2.Complex document management: to disclose a letter of credit, you need to accurately fulfill all the prescribed conditions; 3.The Bank charges a commission for opening a letter of credit; 4.When conducting a transaction using a letter of credit, you need to meet the deadlines prescribed in the contract..

How to work with a letter of credit: 1. Carefully check which characteristics of the letter of credit are fixed in the contract: as a rule, an irrevocable covered letter of credit is used, which cannot be canceled or changed without the consent of the second party; 2. Check the terms for which the letter of credit is opened and assess whether they are reasonable: will you be able to close the deal in this time period;

3. If you are a seller, then you should think in advance how quickly you can get the documents to disclose the letter of credit; 4. Carefully read all the documents necessary to disclose the letter of credit: even spelling errors and typos can become grounds for the bank not to disclose the letter of credit.