|It guarantees the delivery of goods before payment is made.
|It guarantees collection in the event that the customer fails to pay.
|It provides solvency.
|Tool that allows the importer to negotiate the price, because the exporter is guaranteed to collect payment.
|Access to new markets, which the exporter might not necessarily enter unless they were guaranteed to collect payment.
|Financial institutions do not check the goods but are obliged to make the payment provided the correct documentation is provided.
|When preparing the export documentation, the beneficiary must ensure it fulfils the terms of the guarantee on the assumption that in the future it may have to be executed.
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