K&H letter of credit

if you are the importer (buyer)

• Our Bank makes an irrevocable commitment to pay the amounts stated in the letter of credit to the foreign partner of your business upon the required documents being presented to it. You will be expected to pay out only if the conditions in the letter of credit are met.
• achieve a better bargaining position or longer payment terms by offering your partners a letter of credit as a payment method
• improve your liquidity by opting for deferred-payment letters of credit

if you are the exporter (seller)

• if an export letter of credit is opened for your business, the opening bank will make an irrevocable commitment to make a payment against the documents satisfying the requirements in the letter of credit
• if you request our Bank to certify your letter of credit, we will assume the payment, political (bank and country) and documentation risks
• you will have the opportunity for discounting deferred-payment letters of credit, at 100% discounted value, without recourse

transparent, reliable and precise payments

• electronic notifications, within 24 hours (on workdays), of the letters of credit opened or modified
• inspection of documents in no more than 2 banking days: the Bank will check the commercial documents within two banking days if the documents are received by 5 p.m. at the Bank’s Documentary Unit. The Bank will waive the charge for the inspection of documents if, in spite of the above condition being met, it takes more than two banking days to check the documents.
• entering the express courier waybill number in the Flexims system

• those wishing to reduce the risk on their (foreign) trades
• those trading over large geographical distances / for high amounts
• sometimes local customs demand the use of letters of credit