Documents discounting under letter of credit

The product is used in commercial contracts that provide as a payment method, the documentary letter of credit available by deferred payment.

Discounting is made following the receipt of payment confirmation from the issuing bank.

The company’s advantages in discounting documents under L/C are:

• Immediately after delivery, the exporter company receives the cash value of the merchandise or services, decreased by the discounting expenses, so that, by increasing its cash, it can continue production;
• Cash proceeds are released for new transactions;
• The company no longer needs to take banking loans;
• The FX risks are undertaken by the bank;

Company will save the time required for debt management and collection.