Discounting of Export Letters of Credit
Discounting of Export Letter of Credit is a prepayment of documents submitted in accordance with the export letters of credit issued by the Bank's client before its payment maturity.
What are the benefits of the service?
- You will be able to offer buyers a longer term for deferred payment.
- You will receive working capital and improve the financial position of the company by reducing the debts of buyers.
- You will reduce the risk of bad receivables.
How to take advantage of this service?
- The Bank and the seller shall make an agreement of letter of credit document prepayment.
- The seller receives a letter of credit in its favour.
- The seller shall provide the bank with the documents of goods meeting the terms of the letter of credit and the bank shall receive a deferred payment date from the bank that issued a letter of credit and a statement confirming the payment amount.
- The Bank shall assess the risk of the bank that issued a letter of credit (the letter of credit is approved by the bank).
- The seller shall receive settlement from the bank against documents (discounted documents of a letter of credit) of goods provided under the letter of credit .
- On the due day of the deferred payment, the Bank shall receive payment from the bank that issued a letter of credit.
Whom to address regarding questions about discounting of export letters of credit?
We kindly recommend You to contact Trade Finance Department of Šiaulių Bankas:
- by tel. +370 37 301 329 or +370 41 595 613;
- or e-mail to firstname.lastname@example.org
Required information and assistance can also be provided in a customer service point which is servicing Your company or by the Bank's Contact Centre by tel. 1813 (+370 301 337 337 when calling from abroad).