Export Letter of Credit Discounting

Cash in your receivables

Receive money against the sale of your products without waiting for your customers to pay.

Boost your competitive edge

Offer more favourable payment terms to your customers and expand your client base.

Working capital

Use the amount from the discounting to meet business needs or finance new orders.

How export LC discounting works

Find out how discounting for export letters of credit works.

Provided you are an export business, you agree to sell your products to a foreign company against a letter of credit (LC) payable at a fixed future date (deferred payment).
The foreign company, through their bank, issues a letter of credit against which you are to be paid.
We confirm the letter of credit, lowering the risk of non-payment for you.

You ship your products to the importer and deliver the shipping documents to us (e.g. bills of lading, certificates etc.).
The importer’s bank checks the shipping documents and accepts them, provided they meet the stipulated conditions.

We prepay part or the entire purchase amount to your business.
We deduct from the amount any fees, commissions and interest, if the discounting cost is to be borne by you.
When the foreign company pays the invoices, we receive the balance.

Receive the money immediately, without waiting for the deferred payment period.
Meet immediate needs or finance new orders.
Improve your cash flow planning, since you know when you are going to be paid.
Accept bigger or more customers, without worrying about meeting your operating costs.

We bear the risk of non-payment by your customer’s bank, on a non-recourse basis. This way, you:

Secure payments, even if the importer is ultimately insolvent and does not pay your invoices.
Lower political risk in foreign countries, such as delays due to a financial crisis or currency exchange issues.

Enhance the competitiveness of your business by offering better payment terms.
Expand into more markets by being able to sell in countries with a higher credit risk.

You already bank with us.
The issuing bank of the letter of credit is within Alpha Bank's acceptable credit risk limits.
The deferred payment period is no longer than 1 year.
You have booked an appointment at a branch near you.

The supporting documents to start banking with us or to update your details, if you:

Book an appointment today at a branch near you and find out how you can pay your suppliers in advance without placing stress on your working capital.

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