Letter of credit

If your company participates in foreign trade operations, our letter of credit is the most secure and guaranteed international payment method.

A letter of credit is issued by the bank based on your request in favor of your contract counterparty.

Therefore, the bank acts as an intermediary between your company and the seller.

The payment will be done only after the bank receives all the documents confirming the shipment of goods/shipping/rendering of services by the seller.

Letter of credit advantages

For the Seller:

  • Assurance that export income will be collected if the Buyer fulfills all the conditions and terms of the letter of credit;
  • Reliable and quick payment of goods just after their shipment (provided all the supporting documents are submitted to the bank);
  • Insurance of additional risks for the seller if the letter of credit is approved;
  • Receiving the funds in time through the post-financing letter of credit service of the bank, if the buyer requests a deferred payment from the seller .

For the Buyer:

  • Assurance that the Seller will not get the payment until all the terms of the contract are fulfilled;
  • Possibility to use the letter of credit for financing or as collateral;
  • Immediate receipt of the goods needed by the buyer when the wishes and trust of the seller are met;
  • Payment from the bank's funds to the seller and giving the buyer an appropriate respite, if the buyer requests a deferred payment from the seller.


ABB offers You the following types of letters of credit:

  • The irrevocable letter of credit
  • Stand-by letter of credit
  • Confirmed letter of credit
  • Non-confirmed letter of credit
  • Transferable letter of credit
  • “Back-to-back” letter of credit
  • Post-financing letter of credit


ABB offers You the following services of letters of credit:

  • Opening, confirmation, advice, and transfer of letters of credit, other operations (conditions amendment, documents checking, payments);
  • Advisory services regarding the letter of credit  transactions;
  • Confirmation of letters of credit by the world’s first-rate banks;
  • Opening of the import letters of credit (financed by the Client);
  • Opening of the import letters of credit (financed by the ABB);
  • Opening of the import letters of credit with deferred payment (financed by the ABB);
  • Approval of letters of credit opened by other banks;
  • Post-financing Letters of Credit at the expense of the ABB and other financial institutions.
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