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Letters of Credit and Bank Guarantees
Bank Guarantees

CB “EuroCreditBank” JSB, invites you to benefit from services for performing payments by means of documentary operations, permitting a civilized and non-risk trading.

Documentary operations include: Letters of Credit and Bank Guarantees.

Letter of Credit (L/C) - is the safest form of reckoning (payment), excluding numerous risks related to the non-delivery of goods or non-return of the advance. It represents a way of payment consisting of the engagement of the Bank to pay, by order of the Client, named "purchaser of goods", a certain sum of money to the Supplier against presenting to the Bank, during a given period of time, the documents confirming the dispatch of goods, and complying with conditions provided by the L/C.
Advantages of the Letter of Credit use:
The Bank insures the Client-purchaser that the Seller will receive the money only until he has complied all the L/C conditions reflecting the basic transaction parameters, that is especially convenient when settling with a new business partner;
- It is a very profitable form of settlement of accounts when performing big projects or selling specific goods manufactured on demand, which could not be resold in case of Buyer's insolvency;
- The Seller receives, in a guaranteed way, the liquid funds immediately after the goods have been shipped, and doesn't have to wait for the Buyer to receive the goods;
- The Buyer, ensuring the payment through the L/C, can obtain more convenient terms of delivery and payment;
- It provides choices of financing possibilities for different transaction conditions, and also an opportunity to use the L/C as a means of short-term financing;
- The potential economic and insolvency risks in the Buyer's country are excluded. International legal assistance of your deal is guaranteed.

Bank Guarantees is one of the modalities used to honor the obligations both in the commercial and the international turnover. By means of Bank guarantees, the Banks provide commitment to the contractual obligations of the client.