Ahli Bank’s LCs and LGs
What are LCs and LGs?
Letter of Guarantee (LG) is an irrevocable commitment by a bank to pay to beneficiary a specific amount in case a third party fails to perform a certain task, or honor a contract. This third party is usually the one that orders the letter of guarantee, a client for whom the bank undertakes this task, and is usually someone who seeks to assure the beneficiary that the task will be performed according to the contract. An LG may be issued domestically, or in favor of a beneficiary, and it may be partially or totally covered by the customers. The bank is only allowed to charge a commission to cover its costs.
When to use LCs and LGs?
LC: If you are a merchant that exports or imports goods on regular basis, LCs are your choice to ensure secure delivery, payment, and to be saved against fraud.
LG: If you are to embark on a certain project, and you are obliged to submit a guarantee from third party (usually a bank) to assure the beneficiary that the task will be performed according to the contract.
What are the benefits of using Ahli Bank’s LCs and LGs?
Ahli Bank can issue various types of LGs such as Tender guarantee, Performance guarantee, Advance Payment guarantee, and maintenance guarantee.
Ahli bank also supports all kinds of LCs including on-site and delayed payment.
Ahli Bank also gives competitive pricing for the issuance LCs and LGs.
Ahli bank also can finance the payment of LCs.
Minimum cash margin.
Express approval within a few working days.
Flexibility of usage in different trade products.
Simple Credit and Trade documentation.
Customize the product according to your working capital terms and pricing needs.
Leverage on our extensive International network across the world.
For more information
In addition please feel free to visit any of our branches in Jordan or abroad, and one of our Customer Service Representatives will be glad to assist you. Please click on tell me more to locate the branch nearest to you. We look forward to serving you in the best way possible.