Bank Letters of Credit Discount Line
DISCOUNTING DRAFT UNDER THE EXPORT USANCE LETTER OF CREDIT
An export letter of credit may call for the draft to be drawn at a certain number of days after sight or after the shipment date. Typically, the drafts are drawn on the LC issuing bank. Once the LC issuing bank has accepted the documents/drafts, the negotiating bank may consider to discount and pay to the beneficiary in advance before the maturity date.
These rates vary with the amount and tenor. The discount rate is based on the risk of the country of the LC issuing bank and reputation of the LC issuing bank.
- No required credit facility with beneficiary
- Quick turnaround on receivables
- Prevailing discount interest rate
- Immediately payment prior to maturity date
- Drafts must be accepted by the LC issuing bank
- Amount must be within a bank approved credit limit
- Total amount is not to exceed country credit limit
We have branches in California and Washington States to serve your financial needs.
For detail of Bank Letters of Credit Discount Line, please contact our International / Letter of Credit Team.
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