Letter of credit

A letter of credit (LC) is a document issued by the Bank upon the customer’s request to guarantee that the customer’s liability to the seller, as specified in the document, will be duly paid by a specified date.

The Bank will make the payment only after the seller duly submits all documents required by the LC.

Benefits

EXPORTS (FOR SELLERS)	IMPORTS (FOR BUYERS)
Buyers may not defer payment based on a personal complaint.	The goods will be supplied within terms specified in the LC.
If buyers wish to make a complaint regarding any issue related to the goods supplied, they must do it independently from the LC.	Buyers will receive documents requested in the LC by a specified date.
If the buyer wishes to complain about the goods, he must do so separately from the letter of credit	Buyers can be sure that they will only pay if the documents comply with LC requirements in all respects.
The Bank will cover the full amount of purchase as specified in the LC independently from the seller.	By opening an LC, importers provide evidence of solvency and can negotiate more convenient payment terms.
An LC provides much faster payments for goods exported.

Local letter of credit rates

BANKING OPERATION	RATE
Acceptance and verification of documents by TBC Bank	0.1% - at least 100 units (in the currency of the letter of credit)
Making a change in the letter of credit/advising the change	90 units (in the currency of the letter of credit)
postage	60 units (in the currency of the letter of credit)
Discounting/financing	By agreement

International letter of credit rates

BANKING OPERATION	RATE
Acceptance and verification of documents by TBC Bank	0.1% - at least 100 units (in the currency of the letter of credit)
Making a change in the letter of credit/advising the change	90 units (in the currency of the letter of credit)
Transfer of letter of credit	0.15% - minimum 100 units maximum 500 units (in the currency of the letter of credit)
postage	60 units (in the currency of the letter of credit)
Discounting/financing	By agreement
Telecommunication	10 units (in the currency of the letter of credit)
Fee for early cancellation of letter of credit	According to the fact, in accordance with the request of the foreign bank
Endorsement of letter of credit	0.15% - minimum 80 units maximum 400 units (in the currency of the letter of credit)
Other Costs	According to the fact, in accordance with the request of the foreign bank

For more information, please contact us at

tradefinance@tbcbank.com.ge

You may also like