K&H standby letter of credit
a letter of credit is an irrevocable undertaking by the opening bank to make certain payments when the correct documents are duly presented to it in time. It is a payment promise by a bank, the consequence of a commercial transaction.
- the payment method offering the highest degree of security
- an irrevocable commitment by the bank
- a legal relationship independent of the underlying transaction
- it is subject to international regulations, unlike a bank guarantee, which is usually governed by national law
- it allows the risk of the opening bank to be confirmed (that is, we can assume 100% of the bank and country risk)
- you can choose from types similar to bank guarantees
- commercial (payment of consideration for goods)
- financial (repayment of a loan or an advance)
- guarantees contractual performance
- related to tender participation, etc.
who might be interested?
- companies that want to avoid any misunderstanding arising from international law
- companies required to provide a guarantee for an activity subject to a licence or permission
- companies that wish to bolster the trust of their business partners
adapted to your needs
- you do not need to tie up your funds as security related to foreign trade and other deals
- your bargaining position and business image are improved by the Bank’s irrevocable commitment
K&H bank guarantee
We offer a wide range of bank guarantees to secure your company’s payment or delivery obligations towards partners or the authorities and even to accompany grant applications.