is a standard option when you are a buyer and want to pay for a product or service only upon receipt. You go to the Bank, withdraw money from your account or take a loan and open a letter of credit in favor of the seller. And he will receive a payment if he timely submits to the Bank the documents that you indicated in the letter of credit. This can be an invoice or a set of shipping documents. It is also possible to delay the payment under the letter of credit.

for advance payments if your counterparty requires prepayment.  
For example, to purchase raw materials or prepare the goods for shipment. Then you can open a letter of credit and send an advance of 10-50% of its total amount. As soon as the Bank receives a supporting document from your counterparty - it can be an invoice – then the counterparty will receive the amount of the advance. Then, when you decide to pay for goods or service in full, the payment will be made minus prepayment.

for resellers.
As an intermediary you will be able to transfer all or part of the Letter of Credit to your subsuppliers or subcontractors. No need to invest your own money.

What does it look like:

almost the same as a bank guarantee.
It is opened to guarantee the payment or delivery of goods/services in the event of default of your counterparty. It can be issued both by the buyer (standby letter of credit for payment) and by the seller (standby letter of credit for fulfillment of obligations or return of prepayment). Stand-by letters of credit or similar tender guarantees are also issued.

What does it look like:

Warning! The above conditions contain only general information. For more information, please contact your personal manager.