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A STAND BY LETTER OF CREDIT WITH OUT BANK ACCOUNT

Posted: Thu Jun 09, 2022 7:36 pm
by SANUSILAMIN
Dear experts,
The vendor offers issuing stand by letter of credit by bank to cover an advance payment and the buyer doesn't have bank account with it ?
the said bank is at the same buyer's country can I accept it or not ?
please send your replies ASAP
Many thanks and Regards
Humble accountant
09/06/2022

Re: A STAND BY LETTER OF CREDIT WITH OUT BANK ACCOUNT

Posted: Thu Jun 09, 2022 10:55 pm
by picant
Hi Pal,

as buyer, having paid the advance, I'd prefer to have an advance payment bond transmitted via my bank.
by the issuing bank, this does not mean that my bank will pay my claim, but only certify the issuer undertaking. Naturally the APB beneficiary must consider the issuing bank trustworthy.
Other comments appreciated. Ciao

Re: A STAND BY LETTER OF CREDIT WITH OUT BANK ACCOUNT

Posted: Fri Jun 10, 2022 8:34 pm
by SANUSILAMIN
DEAR PICANT
I APPRECIATE YOUR ADVISE I AM GOING TO REFUSE THE APB VIA THE BANK I DON'T HAVE BANK ACCOUNT WITH IT .
MANY THANKS