It is the type of credit which guarantees in a letter that a certain amount will be unconditionally paid when a commitment is not fulfilled i.e.delivery of a good in favor of real or juridical persons resident either within or without the country, or undertaking a task, or payment of a debt on due date.
Your need for a letter of guarantee either in TL or foreign currency is met on time with Koopbank’s expert staff. Moreover, your transactions are quickly made possible and alternative financement methods are proposed thanks to a wide correspondent network in your foreign trade transactions and specialized marketing and operation staff in the foreign trade methods.
Letter of Guaranty in TL / Foreign Currency
Letter of Guaranties
A Letter of Guarantee is a letter provided by a bank and commits the timely and fully accomplishment of a business deal. It is issued in favor of real and juridical persons resident either at home or abroad. It is addressed to counterpart persons or institutions for the delivery of a product or accomplishment of a business deal.
The letter of guarantee stipulates a commitment in the amount stated in the letter for the compensation of any loss that the counterpart would encounter.
A Letter of guarantee could be prepared for definite or indefinite terms based on the nature of the business. The companies are not charged with any interest payment. Rather, a letter of guarantee commission is charged once every three months (excluding special circumstances). Along with other additions this commission is calculated based on the rates determined according to the term and type of the letter of guarantee.
Advantages
Obtaining a Letter of Guarantee from our Bank provides you with the opportunity of benefiting from our Bank’s prestige and trustworthiness.
Facilitated Business – Cost Advantage
A company that has obtained a Letter of Guarantee from our Bank will enjoy carrying out cost-effective business activities without bounding its capital.
Guarantee
A Letter of Guarantee will furnish the counterpart party with an increased assurance.
Required Conditions
You must first have a credit limit or deposit in order to be able to use the Letter of Guarantee product.
Charges
You can learn about our current Letters of Guarantee rates by clicking on Rates menu.
Foreign Trade Financing
Credit Letters
With this foreign trade financing tool, sent to the bank of the exporting firm, the letter of credit indicating the conditions of loading time, terms of payment, the type and the price of the goods to be imported, the bank undertakes to pay the exporter of the goods once they are imported to the TRNC under the previously agreed conditions. If there is a condition indicating that the payment would be made following a pre-determined period after the shipment of the goods, then, the letter of credit is defined as a time letter of credit.
This is a payment method which provides high level of safety both for the importer and the exporter. For the importer, the letter of credit carries the bank’s responsibility for payment of the goods that would be sent within the time limit and the terms agreed as per the contract, otherwise no payment would be made. The letter of credit guarantees the payment of the exporter once the conditions laid out in the letter of credit are upheld.
Types of Credit Letters
This is an export method where the bank of the importer undertakes to pay the exporting firm on the condition that all goods and services as documented in detail have been provided as stated. This encourages the loading of the goods intact and on time. Otherwise no payment will be made by the exporter’s bank.
- Revocable Letter of Credit
- Irrevocable Letter of Credit
- Non-Confirmed Letter of Credit
- Confirmed Letter of Credit
- Rotative / Reversible Letter of Credit
- BacktoBack Letter of Credit
- Transferable Letter of Credit
- Standby Letter of Credit
- Sight Payment Letter of Credit
- COD Letter of Credit
- COD L/C after a pre-determined period following the sighting of the document
- Red-Clause Letter of Credit
Required Conditions
You need to have a credit limit or deposits before you are able to use the credit letter guarantee scheme.
Charges
You can view the charges and the commission to be paid for letters of credit from the Rates menu
Granted, Loan Guarantees
With working our bank, credit documents against acceptance / goods in imports against giving the acceptances, the policies that you accept as a borrower, ensuring your name that it is payable on maturity of the policy. So you can get guarantee from KoopBank to pay the bills of exchange, you will have the opportunity to check the goods before maturity.
