Letter of Credit

02/07/2018 10:54 AM

When receiving the L/C or L/C amendment, Vietcombank checks its apparent authenticity and advise you.


Benefits:
  • L/C advisin​g and L/C amendment are done fast and accurately;
  • Notify customers on unfavorable terms and conditions if any;
  • You may contact Vietcombank before signing contracts to get free advices on payment terms, L/C contents and issuing banks to ensure payment security and cost saving.

Vietcombank commits to pay or accept to pay at maturity to the beneficiary if the presented documents are in conformity with terms and conditions of L/Cs issued by the issuing bank.

Benefits:


  • Be committed by both Vietcombank and the issuing bank to pay or accept to pay;  
  • Reduce customer's concerns when lack of information about the issuing bank;
  • Help customer prevent risk from the issuing bank; 
  • Be assured with the commitment of a leading bank in the country.


Vietcombank receives and checks the documents’ conformity with the terms and conditions of the L/C and international practice. If the documents are discrepant, Vietcombank will instruct customer to correct the documents to ensure the possibility of being paid.

After that, Vietcombank will send the documents to foreign bank for payment and credit to your account when receiving payment from foreign bank.

Benefits:
  • Receive support in making and presenting compliant documents to foreign bank;
  • Reducing the risk of dispute about documents’ conditions and non-payment;
  • Receive support in investigating and negotiating with foreign bank if there are any issues;
  • Receive money in the shortest time with most reasonable fee.

​As the first beneficiary, customer can request Vietcombank to transfer all or a part of the L/C value and advise the second beneficiary. After that, Vietcombank receives the documents and sends for payment.


Benefits:
  • Be useful for intermediary businesses;
  • Provide guarantee to the second beneficiary without using the credit facility at Vietcombank;
  • The second beneficiary is ensured to be paid and has the right to request the nominated bank stated in the original L/C to pay.

Vietcombank negotiates customer's export bills under sight L/C or usance L/C not exceeding 360 days from request; and repayment is expected to come from foreign bank. In case the foreign bank does not effect payment at due date, you will pay Vietcombank the advanced amount.


Benefits:
  • Enjoy high percentages from Vietcombank, up to 100% of document value;
  • Flexible discount tenor in accordance with customers’ capital requirement;
  • Simple and convenient procedures;
  • Discount currency may be VND or foreign currencies in compliance with Laws and Regulations.




Vietcombank negotiates customer's export bills under sight L/C or usance L/C not exceeding 360 days accepted by Issuing bank/Confirming bank. In case the foreign bank does not pay at due date, customer is free from repayment.


Benefits

- Do not require collateral;
- Do not concern about transaction partner's or transaction partner's bank's payment capacity;
- Reduce risks and enhance competitiveness.​

Vietcombank negotiates with recourse the export bills under sight L/C or usance L/C not exceeding 360 days from customer's request within 60 minutes of valid request.


Benefits:
  • Negotiation processed within 60 minutes of a valid request received by Vietcombank;
  • Negotiation is processed without being dependent on document checking result;
  • Percentage is up to 100% of draft / document value.
EPLC indeed is a product of VCB internal Letter of credit (VILC), in which:
+ All participating banks are VCB’s branch(es);
+ Applicant and Beneficiary are VCB’s customers;
+ EPLC has a special condition which allows VCB to make early payment upon Beneficiary’s request before the maturity date of the document presented under L/C.

Benefits: EPLC meets the requirements of purchasing goods and services from local entities. Detailed benefits as follows:
a) For the Seller (the Beneficiary): 
  • Early payment can be effected to Beneficiary without recourse;
  • Eliminate the Buyer (the Applicant)’s payment risk;
  • Indicators in financial statement can be improved;
  • Effective management on cash flow and receivables with simple, convenient and fast procedure.

b) For the Buyer (the Applicant): get all benefits from usance payment issued by VCB as follows:

  • Be guaranteed by VCB for L/C payment;
  • Only have to pay at due date as L/C required.