L/C Discounting on Applicant’s Cost is a service offered by Agribank’s correspondent banks, under which, at the request of the Beneficiary or the Beneficiary’s bank, the correspondent banks agree to negotiate with or without recourse the documents presented under deferred payment L/Cs (either import or domestic L/Cs) issued by Agribank. The discounting fees are borne by the Applicant.

Customer benefits

- Reduced financial cost for customers: Better price negotiation with suppliers through sight payment advantage; competitive discounting fees thanks to preferential pricing policies offered by Agribank’s correspondent banks.

- Deferred payment in accordance with the L/C terms: Enhanced liquidity and cash flow, reduced foreign currency pressure and greater flexibility in business operation and production.

- Strengthened relationships with foreign partners as exporters/sellers obtain secured payment thanks to non-recourse discounting from Agribank’s correspondent banks.

- Access to value-added services from correspondent banks such as status updates on the L/C, document presentation and shipment progress

Required documents:

- Application for L/C issuance (Agribank’s form);

- International/Domestic sales contract;

- Other documents as per current regulations.

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