Financial
Standby Letter of Credit
Bank guarantee functioning as payment backup, executable only if the buyer fails to make direct payment.
Bank guarantee functioning as payment backup, executable only if the buyer fails to make direct payment.
A standby L/C functions like a bank guarantee: the exporter only draws on it if the importer fails to pay directly. Unlike a commercial L/C, it is not the primary payment mechanism but a backup.
Letter of Credit
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
FinancialCustoms Bond
Financial guarantee ensuring payment of trade duties. May cover temporary imports (IMMEX), transit, bonded warehouse regime, or serve as security in valuation disputes.
TradeInternational Payment Terms
Agreed conditions between buyer and seller regarding when, how, and in which currency payment will be made for a foreign trade transaction.