Letters of Credit
A letter of credit (Documentary Credit, Letter of Credit – L/C) is a bank's obligation to pay for the goods or services issued upon the buyer's request in accordance with documents submitted by the seller, which correspond to the terms and conditions specified in the letter of credit.
How can a buyer benefit from this service?
- The Bank will pay for goods only after the seller provides the Bank with documents meeting the terms of the letter of credit.
- You will have an opportunity to foresee deadlines for dispatch of goods as well as other terms and to receive the goods in time.
- If a letter of credit has been issued with a deferred payment term, you will have the opportunity to sell the received goods first and to settle the payment on the due date.
- Documents shall be prepared in accordance with the international standards.
How can a seller benefit from this service?
- The Bank shall undertake to pay for good as soon as the terms of letter of credit are fulfilled.
- You will have possibility to impact the payment date - the faster You dispatch the goods, the faster You will receive the payment.
- If a letter of credit has been foresees a deferred payment term, You will be able to receive the payment in advance taking advantage of discounting of export letters of credit service.
- Documents shall be prepared in accordance with international standards.
What major conditions should be met to receive a letter of credit?
A letter of credit may be issued when a company deposits funds in a special bank account or from a credit line provided to the company.
Where to apply for letters of credit?
We kindly recommend You to contact the Trade Finance and Factoring Department of Šiaulių Bankas:
- by tel. +370 37 301 329, +370 41 595 613 or +370 41 375814;
- or e-mail to [email protected]
Required information and assistance can also be provided in a customer service point which is servicing Your company or by the Bank's Remote Call Centre by tel. 1813 (+370 301 337 337 when calling from abroad).