There are several ways of dealings with International trade. The most functioning ways including:

● Letters of credit

● Bills for collection

● Letters of Guarantee

Letters of Credit:

A letter of Credit enjoys various advantages over other means to do international trade transactions, achieving most suitable common medium for trade. Ensuring to pay thoroughly against letters of credit for the goods, the way to transfer the payment of the goods is likely and easy. Letters of credits solves the problems of two things (submitting goods and receiving its value, payment) in the meanwhile. Therefore, the letters of Credit is fast and worthy trusted means to pay indebt resulting out of International Trade.

IB help providing the best-secured strategies for your personal activities in business importing and exporting complied with the contract offered by bank and the operation in which the bank agrees to entitle someone to use an amount alongside submitting documents specified by a contract of opening credit.

Letter of Credit:

● The importer's bank irrevocably commits to payment provided that the exporter complies with the terms and specifications of the letter of credit.

● A letter issued by a bank to another bank(typically in different country)to serve as guarantee for payments made to specified person under specified condition, if required additional guarantees by another bank, so-called (confirmation).

IBY provides several types of Letters of Credit:

● Sight letters of Credit: The amount is paid once the required documentation received. The letters of credit will not deliver to the applicant of opening of credit by us and permitted him to deal with them unless full payment fulfilled.

● Deferred Payment Letter of Credit: based on this credit, the bank abides to pay the bill/bills of exchange on the maturity date, enabling the customer the full competency to deal with the importing goods; conditionally, committed himself to pay on the maturity date.

● Advance Payment Letter of Credit: assumed in this case that the importer paid the amount of goods at the time of opening credit to transfer it at opening credit also. The purpose for that the exporter is need for the money to buy raw materials or some parts of the imported goods out of other merchants or production factories.

● Revolving letter of credit: credit in which the payment can be renewal spontaneously with same previous conditions for specified or multiple times mentioned in the revolving letter of credit.

Bills of Receivable:

A mode of payment in which the importer hereby issued a bill of exchange or submit all these documents to the importer's bank (collection bank); moreover, the later hands these over in return for payment or acceptance of a bill of exchange.

Letters of Guarantee:

Letters of guarantee play an important role in external trade operations. The most important achievements in this field is that such letters of guarantee replace the cash credits that are remitted to and from foreign countries as a guarantee for the operations in which one party is not resident. In such a way, there is no need to remit these funds, then retrieve them after the purpose is fulfilled

Types of Letters of Guarantee

Letters of guarantee issued for beneficiaries inside the country as requested from our correspondent abroad upon banking arrangements and agreements with our correspondents abroad. This service is available to our clients through the following means:

Notification of the Letters of Guarantee:

Upon the request of the correspondent bank, the bank notifies the local beneficiary without adding our confirmation or the participation of the bank in such letters of guarantee. The correspondent bank is fully responsible for the payment of the value of the letter of guarantee. The liability of our bank is restricted to the authentication of the signatures of the correspondent bank (in case of sending the letter of guarantee by mail) or decoding the code (in case of sending it by the telex or the swift code).

Notification of the letter of guarantee along with adding our confirmation:
Upon the request of the correspondent bank, the beneficiary is notified with the letter of guarantee and the bank confirms the letter.

Notification of letters of credit issuing for the good of beneficiary abroad upon the request of the bank customers:

Issuing these letters of credit based upon the request of Bank customers to subscribe in international tenders abroad or international trade.

The bank will notify the correspondent as:

● Notification of letters of credit for beneficiary abroad without adding confirmation.

● Notification of letters of credit for beneficiary abroad with adding confirmation. The clerk has to pay the full value of letter of credit before its issuing with a possibility to grant a credit for customers in specific cases.