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L/C’s and L/G’s
What are L/C’s and L/G’s?
Letter of Credit (L/C): A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally, the letter of credit contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will not longer be made.
Letter of Guarantee(L/G): A letter from a bank to a brokerage firm which states that a customer (who has written a call option) does indeed own the underlying stock and the bank will guarantee delivery if the call is assigned. Thus the call can be considered covered. Not all brokerage firms accept letters of guarantee.
When to use a L/Cs and L/G’s?
If you are a merchant that exports and imports goods on regular basis L/C’s are your choice to insure secure delivery and insurance against fraud, or if you are a stock broker you can make use of L/G’s form banks to cover you immediate expenses.
What are the benefits of using Ahli Bank’s L/C’s and L/G’s?
- Ahli Bank gives you your L/G’s in many versions and tastes including but not limited to Tender guarantee, Performance guarantee, Advance Payment guarantee, and Maintenance guarantee.
- Ahli bank also supports all kinds of L/C’s including onsite and delayed payment.
- Ahli Bank also gives competitive pricing for the issuance L/C’s and L/G’s.
To apply
Visit any of our branches in Palestine and fill in the application form, and your account will be opened instantaneously. To learn about the locations of our branches call us 970 2 2959343
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