Letter of Credit - The Bank is obliged to pay the cost of the goods and services mentioned in the Letter of Credit to the Beneficiary if the documents confirming delivery of goods and rendering of services by the seller (beneficiary) are presented to the bank. The peculiarity of the letter of credit is that after all the conditions specified in the contract are executed, the payment is not received by the bank, but by the bank itself.
Accreditation is widely used in trade transactions. Advantages of letters of credit:
For the buyer:
Unless the conditions under which the letter of credit are fulfilled, the money will not be erased from the account
Determines the terms of the letter of credit
For the seller:
Transfer of money to the bank account in a timely manner regardless of the buyer's financial condition and any other factors after all the conditions specified in the Letter of Credit.
Minimizing risk during trade.
Services provided by letters of credit
Opening, Confirming, Avizo, and Transfer of Letters of Credit
Receiving, checking and sending letters of credit related documents
Approval of the letter of credit by an international status bank
Changing the terms of the letter of credit (extension, extension, cancellation, etc.)
All transactions related to the letter of credit are governed by the tariffs approved by the Supervisory Board of Azerpost LLC and the agreement signed between the parties.