Get your financial dealings guaranteed with a letter of credit from Bank One
A letter of credit is an undertaking issued by a bank for the account of the buyer to make a payment to a named Beneficiary/Seller within a specified time against the presentation of documents which must comply strictly with the terms and conditions of the letter of credit.
Irrevocable Letter of Credit
The irrevocable letter of credit is a credit that can neither be amended nor cancelled without the agreement of the Issuing bank, the confirming bank, if any, and the beneficiary.
Unconfirmed Letter of Credit
A letter of credit forwarded by the Advising Bank directly to the exporter without adding its own undertaking to make payment but only confirming its authenticity
Confirmed Letter of Credit
A confirmed irrevocable letter of credit is one to which the Advising bank (at the request of the Issuing bank) has added its confirmation that payment will be made. The Advising bank thus gives an additional undertaking in addition to the Issuing bank that it will honor drawings if all documents presented conform to the terms of the credit.
Transferable Letter of Credit
A transferable letter of credit is a credit that permits the beneficiary of the letter of credit to make some or all the credit available to another party/parties, thereby creating a secondary beneficiary/ies . The party that initially accepts the transferable letter of credit from the bank is referred to as the first beneficiary. The bank issuing the letter of credit must approve the transfer. The LC must state expressly that the credit is transferable. The credit can be transferred only on the terms and conditions specified in the original credit with the exception of
• The amount of the credit
• Any unit price stated therein
• Expiry date
• The latest shipment date
• The period for presentation of documents
Standby letter of credit
A standby L/C (as the name suggests) affords the seller a guarantee of payment in the event that the buyer defaults on payment. Standby letters of credit typically require less documentation than a commercial letter of credit. The seller/beneficiary is able to draw under a standby L/C by presenting a certificate of non payment, and other documentation indicating that the customer has not performed its obligation.
Expatriate guarantee
This guarantee is issued in favor of the Government of Mauritius to secure the repatriation cost of expatriates coming to work in Mauritius in case the company does not have the capacity to pay for the repatriation expenses.
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