Stand-by letters of credits
Secure foreign trade transactions
- Certainty of payment of suppliers and guarantee of contractual obligations.
- Autonomy from the underlying commercial transaction.
A stand-by letter of credit is a payment instrument whose primary function is that of a guarantee. The beneficiary of a stand-by letter of credit submits the required documents only if he has not received the payment from the ordering party by the date set in the underlying commercial/financial contract.
- guarantees the beneficiary that the payment will be settled, according to the required terms, against presentation of the documents in compliance with the stand-by l/c credit ;
- guarantees the ordering party (applicant) that the payment to the beneficiary will be made only upon the presentation of documents in compliance with the terms and conditions set out in the credit;
- can be used both for the supply of goods and for other purposes (e.g., for turn-key delivery of entire plants).
Inbiz, the Corporate Internet Banking platform of Gruppo Intesa Sanpaolo, allows business companies to simplify the management and monitoring of complex transactions by communicating with the bank in every operating step of the stand-by l/c in case of :
- request for issuing (digital signature of the contracts, both in case of issuing and in case of amendment, drawing and acceptance of documents, discharge etc ) and
- export documentary credits to be received – - (pre-advice, notification, drawing, amendments etc);
- consulting the reports on existing transactions in real time;
- cutting processing time;
- allowing several users to use the application with different levels of personalised access and operations.