It is an irrevocable and independent commitment on behalf of the Importer’s bank (Primary debtor) to pay the Supplier up until a specific amount, within a specified time frame, by presenting the prerequisite documents.
As an Importer, you can pay your supplier only if said terms and conditions of the Letter of Guarantee (timely loading / document procurement) have been met. Additionally, you have access to trade credit (e.g., 60 to 120 days) due to the coverage of the payment through the Letter of Guarantee.
The documents you have to submit are the following:
The documents we will need from you are the following:
Both the importer and you, the exporter, have multiple benefits to gain:
For the Importer:
For the Exporter:
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