Documentary credit (L/C Letter of credit)
Documentary credit is safe payment method based on the contract between a seller and a buyer, usually in international trade. Documentary credit means that the payment is not realized directly between the seller and the buyer. Instead, it is the buyer’s bank that is obliged to pay to the seller’s bank upon showing the contract between the business partners. Documentary credit is a frequent payment method between the business partners who do not know each other.
Recommended to:
- Businesses with an international clientele
How to apply:
- Personally at the Central Branch of KDB Bank Europe Ltd. (1054 Budapest, Bajcsy-Zsilinszky út 42-46.)
- Electronically via PC Banking Service
Conditions:
- KDB current account (HUF or foreign currency)
- Cover: in case of HUF or other currency: 120%, in case of same currency with the L/C: 110 %
Related regulations:
Documentary Credits are regulated by the UCP’s Publication No. 600 of the International Chamber of Commerce, Paris (UCP Publication No. 600, 2007).
Contact:
- KDB Kontakt (Call Center): +36 1 473 4440.
- KDB Bank Europe Ltd. / International Payment Unit
