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  • Which Is A Better Choice - A Letter Of Credit Or Bank Guarantee

    Letters of Credit and Bank Guarantees are the two most commonly used trade finance instruments in an international trade deal. Both are issued by a bank or legal financial institution to mitigate the payment risks between the parties as well as to safeguard the parties’ interests. Both demonstrate that the buyer/importer will pay the beneficiary/seller/exporter on time. In case, if the buyer is unable to do so, the issuing bank will step in and take the charge for the same. But they work slightly in different ways in different situations.

    Letters of Credit

    Also known as a documentary credit, or payment guarantee letter, an international letter of credit service is a legal document issued by the buyer’s bank or financial institution to the seller’s bank. It is a confirming document that assures that the payment will be made to the seller by the buyer once the terms & conditions mentioned in the LC agreement are fulfilled by both parties. But in case of the buyer defaulting, the issuing bank will compensate. Read our comprehensive guide on letter of credit.

    Bank Guarantee

    A Bank guarantee is also a legal contract where the issuing bank is committed to paying the beneficiary on behalf of its applicant i.e. buyer as per the terms & conditions of the BG contract. But the issuing bank will only enter when the buyer defaults or fails to make the payment. In simple words, it protects against non-performance. Know the types of BG.

    Read more: https://www.axioscreditbank.com/blogs/which-is-a-better-choice-a-letter-of-credit-or-bank-guarantee

    #LetterOfCredit #Bankguarantee #tradefinanceinstruments #internationalletterofcreditservice #AxiosCreditBank

    Which Is A Better Choice - A Letter Of Credit Or Bank Guarantee Letters of Credit and Bank Guarantees are the two most commonly used trade finance instruments in an international trade deal. Both are issued by a bank or legal financial institution to mitigate the payment risks between the parties as well as to safeguard the parties’ interests. Both demonstrate that the buyer/importer will pay the beneficiary/seller/exporter on time. In case, if the buyer is unable to do so, the issuing bank will step in and take the charge for the same. But they work slightly in different ways in different situations. Letters of Credit Also known as a documentary credit, or payment guarantee letter, an international letter of credit service is a legal document issued by the buyer’s bank or financial institution to the seller’s bank. It is a confirming document that assures that the payment will be made to the seller by the buyer once the terms & conditions mentioned in the LC agreement are fulfilled by both parties. But in case of the buyer defaulting, the issuing bank will compensate. Read our comprehensive guide on letter of credit. Bank Guarantee A Bank guarantee is also a legal contract where the issuing bank is committed to paying the beneficiary on behalf of its applicant i.e. buyer as per the terms & conditions of the BG contract. But the issuing bank will only enter when the buyer defaults or fails to make the payment. In simple words, it protects against non-performance. Know the types of BG. Read more: https://www.axioscreditbank.com/blogs/which-is-a-better-choice-a-letter-of-credit-or-bank-guarantee #LetterOfCredit #Bankguarantee #tradefinanceinstruments #internationalletterofcreditservice #AxiosCreditBank
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  • International Letter Of Credit Service Provider

    A letter of credit has a vital role in reducing the payment risks for exporters as well as ensuring on-time delivery of ordered goods for importers in international trade transactions as per the mentioned terms in the LC agreement. But what is an LC? A letter of credit is simply a legal document issued by a bank or FI with a guarantee to pay the seller on time in the event of the buyer’s default. Looking for an international letter of credit service provider? Axios Credit Bank Ltd is here to help you.

    Letters of credit are frequently used in global trade to ensure that the transaction goes ahead as planned since both parties are unfamiliar with each other and differ in terms of geographical rules. To ensure the buyer’s creditworthiness to the seller, we come as an international letter of credit service provider and reduce the associated foreign trade transaction risks. Visit our website to know more.

    Visit us: https://www.axioscreditbank.com/letter-of-credit

    #GlobalLetterofcreditservice #Internationalletterofcreditservice #internationalletterofcreditserviceprovider #InternationalLetterofCreditServices

    International Letter Of Credit Service Provider A letter of credit has a vital role in reducing the payment risks for exporters as well as ensuring on-time delivery of ordered goods for importers in international trade transactions as per the mentioned terms in the LC agreement. But what is an LC? A letter of credit is simply a legal document issued by a bank or FI with a guarantee to pay the seller on time in the event of the buyer’s default. Looking for an international letter of credit service provider? Axios Credit Bank Ltd is here to help you. Letters of credit are frequently used in global trade to ensure that the transaction goes ahead as planned since both parties are unfamiliar with each other and differ in terms of geographical rules. To ensure the buyer’s creditworthiness to the seller, we come as an international letter of credit service provider and reduce the associated foreign trade transaction risks. Visit our website to know more. Visit us: https://www.axioscreditbank.com/letter-of-credit #GlobalLetterofcreditservice #Internationalletterofcreditservice #internationalletterofcreditserviceprovider #InternationalLetterofCreditServices
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  • International Letter Of Credit Service

    Being a global trader, you might know the importance of letters of credit. It is one of the most secure payment instruments available in international trade for both importers & exporters. The issuing bank guarantees to pay the exporter on behalf of the importer ie. the applicant in case the importer defaults or is unable to pay. Are you looking for an international letter of credit service? If yes, then Axios Credit Bank Ltd is the ultimate solution.

    With our range of letter of credit services at affordable rates, we are enabling importers to assure their exporters an on-time payment while the exporters can also boost their working capital flow, and export sales as well as access more export markets. Just tell us your requirements and our expert team of finance will help you avail the right type of letter of credit. Be it a Standby LC or Red Clause LC, we have got you covered. Visit us now!!!

    Visit us: https://www.axioscreditbank.com/letter-of-credit

    #InternationalLetterofCreditServices #GlobalLetterofcreditservice #Internationalletterofcreditserviceprovider #AxiosCreditBank
    International Letter Of Credit Service Being a global trader, you might know the importance of letters of credit. It is one of the most secure payment instruments available in international trade for both importers & exporters. The issuing bank guarantees to pay the exporter on behalf of the importer ie. the applicant in case the importer defaults or is unable to pay. Are you looking for an international letter of credit service? If yes, then Axios Credit Bank Ltd is the ultimate solution. With our range of letter of credit services at affordable rates, we are enabling importers to assure their exporters an on-time payment while the exporters can also boost their working capital flow, and export sales as well as access more export markets. Just tell us your requirements and our expert team of finance will help you avail the right type of letter of credit. Be it a Standby LC or Red Clause LC, we have got you covered. Visit us now!!! Visit us: https://www.axioscreditbank.com/letter-of-credit #InternationalLetterofCreditServices #GlobalLetterofcreditservice #Internationalletterofcreditserviceprovider #AxiosCreditBank
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