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Banks

A specialised lending bank considering an ongoing facility would look at all Credits. Additionally, the lending bank would require to see all sales orders not specifically backed by Credits in order to be able to satisfy bank would require to see all sales orders not specifically backed by Credits in order to be able to satisfy itself about the buyer, the amount and the buyer’s country by making discreet inquiries through its network of international branches and associates.

Since the lender is being asked to place reliance on the underlying transaction, the success of these methods of finance will depend almost entirely on the monitoring and control exercised both by the exporter and the bank. The prior consent of the bank may also be required before the exporter agrees to amendments to any terms and conditions of documentary Credits or sales orders.

It is important that the exporter keeps the bank fully informed, and makes the bank aware of any adverse occurrence as soon as he knows it himself.


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