The Standby Letter of Credit Monetization, in any of its forms, is a very common resource in international trade. Visit here: https://bit.ly/3MbJ99B

3. A Standby Letter of Credit Monetization is put into
operation when a seller and a buyer agree on a
series of conditions (shipment method, quality,
quantity, payment method, value). But, in order to
use this instrument, the buyer must first ask his
bank to issue a letter of credit in his favor. This is
what is known as the opening of a letter of credit,
at which point the bank assumes the
responsibility of paying the seller when the
conditions of the transaction are met. In turn, the
issuing bank notifies the seller's bank that there is
a documentary credit of which its client is a
beneficiary.
To issue this bank guarantee lease, it is common

5. What types of letters of credit exist?
Different types of letters of credit can be posted
that can be issued by a bank depending on its
requirements and terms.
• Irrevocable. Most letters of credit have this
nature since the agreement established between
the parties cannot be modified without the prior
consent of all the agents involved.
• Nominative. Those that expressly indicate
which banks are authorized to issue, confirm and
negotiate the letter of credit. Otherwise, it is said to
be a negotiable letter of credit.

7. • At sight, by acceptance, or by deferred
payment. Depending on its availability, the
documentary credit is qualified at sight when
the payment is immediate against the
presentation of the agreed documentation.
On the contrary, it will be by acceptance
when the paying bank accepts a bill of
exchange issued at a certain term, and
deferred payment when the payment takes
place within a certain period after the use of
the letter of credit (at a certain maturity ).
• Transferable. In this case, the exporter
may transfer all or part of his rights to another
party. In this way, you avoid using your own

9. • Standby. Colloquially, it could be said that
this type of bank guarantee lease responds
to a plan B. It is a kind of bank guarantee
used to cover financial obligations due to
non-payment. In general, this type of credit
expires after twelve months.
The Standby Letter of Credit Monetization, in
any of its forms, is a very common resource
in international trade. Distances and the
existence of cultural or language barriers can
negatively affect the trust that develops
between the parties and, therefore, this
instrument is one of the best insurances that
exist in exchanges between actors from