Why the interest and currency management should be interesting for you? Each day the global market offers new possibilities to your company that you should embrace. At the same time, markets are becoming more and more dynamic.
Professionally cover transactions with new partners. Use the letter of credit as a settlement and finance solution so that you can optimally arrange and cover your transaction. With a documentary letter of credit the importer's bank (the bank issuing the letter of credit) makes an abstract promise to pay the exporter on behalf of the importer. This promise to pay is described as abstract because the banks only check the documents. They are not concerned with the underlying transaction.
The importer's bank fulfils this promise to pay as soon as it has all of the prescribed documents and the conditions of the letter of credit, such as delivery dates, have been met. The documentary letter of credit ensures that the exporter receives his money even if the importer is unable or does not want to pay.
Security for both sides
With documentary collection you are supported by banks in Germany and abroad. The banks only hand over the documents for the goods against payment (d/p collection: documents against payment) or against acceptance of a bill (d/a collection: documents against acceptance). The importer therefore as a rule only takes ownership of the goods upon payment. And the exporter only receives payment for the value of the goods when they have been delivered in accordance with the contract.
Guarantees from a competent partner: Sometimes you simply need more security
We are happy to make a guarantee for you and assure that we will make a payment in a certain amount for you as the beneficiary to your business partner, if you are unable to make a payment or if a certain event occurs (or does not occur). Conversely, you can also cover yourself with guarantees from your business partner for certain guarantee events. A guarantee is what is known as an abstract security - it legally detached from the underlying delivery transaction.
Hedge risks: International business involves numerous risks. Just as numerous are the opportunities to hedge against these risks with guarantees. An overview of the possible uses and benefits of the various guarantees is provided below.