Letter of Credit (Documentary Credit or L/C) is a method of payment which constitutes an irrevocable undertaking of the Bank to make a payment against the Beneficiary’s presentation of documents complying with the terms and conditions of a Letter of Credit.
Banca Intesa handles all types of Letters of Credit applied in international and/or Russian banking practice including:
- Letters of Credit available by payment at sight (Sight Letter of Credit)
- Letters of Credit available by deferred payment (Letter of Credit with Deferred payment) and others.
Banca Intesa provides the following types of operations under Letter of Credit:
- Issuance of Import Documentary Letters of Credit (including Letters of Credit confirmed by Russian or foreign banks);
- Advising of Export Documentary Letters of Credit received from Russian or foreign banks;
- Acting as a Nominated Bank and Confirming Bank under Export Letters of Credit issued by Russian and foreign banks (subject to the sufficient inter-bank limit).
Main advantages of Documentary Credits:
For the Exporter/ Seller:
- Absence of Importer/ Buyer credit risk (Payment execution is secured by the Bank)
- Double assurance of payment execution in case of Confirmed Letter of Credit
- Mitigation of risk that the Importer/Buyer won`t accept the delivered goods or services provided
- Goods or services as provided enhanced competitive strength through application of trade finance instruments
For the Importer/Buyer:
- Assurance of purchased goods shipment or services are received in due time as well as timely preparation of documents for customs clearance procedures ;
- Opportunity to conclude contracts on more comfortable economic terms (price, payment period, etc.)
- Opportunity to monitor each project stage performance
- Alternative to advance payment
- Opportunity to receive financing from the Bank for effecting payments under L/C.
COST OF LETTER OF CREDIT* FOR CLIENTS OF BANCA INTESA
| Banca Intesa commissions and charges |
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| Other bank commissions and charges |
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* L/C structure as well as amount of bank charges depend on the terms and conditions of the corresponding concluded agreement on L/C issuance and financial standing of the Client
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Presentation - Trade Finance and Documentary operations |
Rates
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Rates for cash and settlement services to corporate customers (legal entities and private entrepreneurs) |
Contact details
For getting more information in relation to Trade Finance and/or Documentary operations please send your request to the following email address: trade_finance@bancaintesa.ru
