Letter of Credit

Secure Payment Guarantee

With a Letter of Credit, obtain a payment guarantee upon the submission of documents that meet the required conditions, ensuring safe international trade.

Security for the Buyer

If the seller does not meet the conditions, payment will not be made, allowing you to minimize your risk as a buyer.

Solution for Your International Trade

Protect both parties' rights with a Letter of Credit, addressing different foreign exchange regimes and security issues in international trade.

Who Can Benefit?

Commercial Firms

Corporate Companies

Basic Credit Conditions

Corporate, commercial, and SME businesses are eligible.

Loan limit approval is entirely at the discretion of the bank.

The bank reserves the right to make changes to the loan limit.

Frequently Asked Questions

A Letter of Credit is a conditional bank guarantee that ensures payment to the seller by the bank upon submission of required documents within a specified period. It is particularly used to establish trust in international trade.

For Buyers:
No payment is made to sellers who don't meet conditions, thus protecting the buyer.
Ensures goods are delivered on time and in accordance with the contract.

For Sellers:
Payment is guaranteed when documents are submitted to the bank.
Provides financing convenience.
When shipment and documents comply with Letter of Credit terms, payment is firmly committed by the bank.

Letter of Credit should be preferred in international trade transactions where parties don't know each other and trust issues exist. It provides a secure payment and delivery process in situations involving different exchange regimes and risks.

In international trade, trust and risk factors are prominent as parties don't know each other well and different exchange regimes apply. While the seller wants to collect payment for goods, the buyer wants to receive the contracted goods on time. Letter of Credit ensures the bank won't make payment if the seller doesn't comply with conditions, providing security for both parties.

Our Other Foreign Trade Financing

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Guarantee Letters and Counter-Guarantees

A type of collateral that provides a payment guarantee in case certain obligations are not fulfilled, enabling Turkish companies to continue their commercial activities abroad.

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Vesaik Mukabili

Vesaik Mukabili is a practical and low-cost method that allows the importer/exporter to receive the goods from customs after paying the value of the goods.

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