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Discounting of Letter of Credit for exports

When using Letter of Credit, the client can choose various ways of payment, including the delayed payment option. In this case the client receives the payment with a slight delay that can create difficulties in financial flow, therefore we offer an option to discount the Letter of Credit.

  • Discounting of Letter of Credit is a short-term crediting of the seller by the bank. The bank can finance the client in case of Letter of Credit for export (if the client is seller in the transaction) by negotiating or by purchasing the documents or by making the early disbursement of the postponed payment. This means that the bank pays to the client the amount indicated in the agreement before receiving the payment from Letter of Credit issuing bank.
  • Letter of Credit issuing bank's commitment to pay the amount mentioned in the Letter of Credit at a certain date serves as a credit guarantee to the bank. SEB bank will carefully evaluate the bank that has issued the Letter of Credit and its risk limit.
  • For discounting the Letter of Credit the bank applies corresponding discounting fee.

To learn more, please, ask your company consultant at the bank!

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