Documentary credit - also called a letter of credit (L/C) - is a special form of payment in foreign trade. Bank Austria handles all variants of this instrument for its customers and supports them in selecting the optimal variant for their import and export transactions.
Export letters of credit
Bank Austria advises the exporter – with or without confirmation – of the letter of credit opened by the foreign bank at the order of the buyer, examines the presented documents and pays when the conditions of the letter of credit have been fulfilled.
Letter of credit transfers
When the exporter named as the beneficiary in a letter of credit must first purchase the goods before delivery can be made, the letter of credit can be transferred to the manufacturer in part or in whole under certain circumstances.
Discounting claims from letters of credit
Receivables from a letter of credit that are payable at a later date (for example 90 days after shipment) can be paid out to the exporter immediately if the necessary financial standing criteria are fulfilled.
Import letters of credit
Bank Austria opens the desired letter of credit on request by the importer. The letter of credit can be issued as a sight L/C, stipulate deferred payment, can be transferable or non-transferable, can require confirmation or can require non-binding advice and can be payable in Austria or in another country.
Back-to-back letters of credit
Are especially interesting for transit agents and are primarily used when a simple letter of credit transfer would not be possible or suitable.
Standby letters of credit (SLC)
This is a special form of letter of credit and is not used as a payment instrument, but only as a guarantee. SLCs are used when a standard bank guarantee cannot be issued due to foreign laws (for example in the USA).