Payment under export letter of credit (L/C) prior to the agreed maturity (discounting) offers the opportunity to reduce business risks and receive financing. To this end, L/Cs with deferred payment are used for settlement purposes. Having received an export L/C with deferred payment, shipped the goods and presented L/C documents to the bank, the seller may ask the bank to pay under them before the maturity, i.e. discount the documents.
Benefits of discounting L/C:
Citadele bankas discounts L/C, if all of the following conditions have been met: