Trade finance

Merchants involved in exports and imports of goods on a regular basis choose our LCs to ensure delivery and payments. It is often used in a transaction to mitigate the risk of not being paid post-delivery of the products. An LC is issued to the buyer after carrying out the necessary due diligence and collecting sufficient collateral. The letter is then presented to the seller as a proof of the buyer’s credit quality.

LCs are issued in forms such as:

• Import and Export LCs;

• Revocable and Irrevocable LCs;

• Confirmed LCs and Unconfirmed LCs;

• Sight Payment and Deferred Payment LCs.

A Bank Guarantee is a bank’s commitment to honour payment to a beneficiary if the opposing party does not fulfil its contractual obligations. It is different than LCs since LCs are independent of the of the underlying contract of sale.

Bank guarantees come in different forms such as:

• Advance Payment Guarantee;

• Deferred payment Guarantee;

• Performance Guarantee/Performance Bond;

• Tender Guarantee/Bid Bond.

Isbank Georgia can issue Guarantees against the Counter-guarantees of foreign financial institutions and also provide counter-guarantees to foreign banks to facilitate import as well as export transactions of the clients.