Trade Services Features
Let Citibank be your trade services partner. Our on-the-ground experience, expertise and global network can help you conduct trade confidently and efficiently.
Letters of Credit
A Citibank Letter of Credit facilitates import and export transactions. An import letter of credit simplifies the process of sourcing and buying products from overseas. The letter is issued by us (as the issuing bank) and payment is guaranteed to the seller (exporter) once the seller validates it has shipped the goods and met the terms of the sale. Through this letter, Citibank substitutes its own creditworthiness for yours. This assurance makes it easier for you to find overseas companies willing to trade with you.
You can also delay payment for goods until they are shipped and after the exporter complies with all terms. Plus, you can use an import letter of credit to obtain financing for your international purchases when an exporter can't provide financing.
These serve as proof that the actual shipment of a product or service has occurred, so that the buyer can accept a bill and the seller can receive payment.
Standby Letters of Credit
At times, you may be required to provide security to cover your performance or financial commitments. Standby letters of credit can provide that protection. They attest that we will pay on your behalf, if and when requested, as long as the required documents are presented.
These letters can support lease agreements, bid bonds, warrantees, contracts requiring performance guarantees and more. Often, they can be used in place of escrow accounts or security deposits, helping to preserve your cash flow.
Confirmed Letters of Credit
Letters of credit also facilitate your export transactions. As the seller, an export (or confirmed) letter of credit from Citibank gives you the assurance that you will be paid if you present the required documents according to the terms of the letter of credit. With the issuing bank's consent, we add our commitment to that of the issuing (importer's) bank, reducing risk all-around.