As an importer, a letter of credit assists you to conduct transactions without the obvious risk of advance payment and negotiate more favorable terms with the seller. Commercial Bank can serve as the Letter of Credit issuer ,payer, advisor, negotiator, acceptor and /or confirming Bank.

Commercial Bank offers the following types of Import LC's, both local and foreign:

• Sight LC's- By payment and by negotiation.
• Usance LC's- By Deferred Payment, By Acceptance and Negotiation.
• Clean LC's- Standby and LC's without title documents.
• Transferable LC's.
• Confirmed LC's.
• Revolving LC's.

As an exporter, a letter of credit will remove your risk on the buyer , but issues of timing and payment in a desired currency remain. Commercial Bank's confirmation eliminates your exchange and cross border political risks and reduces your collection float by additionally ensuring payment when terms of shipment are complied with. If desired, we may also offer discounting pre-payment. Our experience of the importer's market enables us to price the risk we assume fairly, based on our knowledge of local conditions.

Inward Bills for Collection (IBC)

• One of the methods facilitating International Trade for obtaining payments is collections and is based on a high degree of trust between the seller and the buyer.
• Handling of Collections in banks worldwide are governed by “Uniform Rules for Collection” - ICC publication no. 522
• Inward Bills for Collection Department acts as an agent for collection and must follow remitting bank instructions for releasing documents to drawee

Outward Bills for collection

• One of the methods faciliting international Trade is handling of export documents which are presented to the Bank by the Seller/Exporter to release documents to the buyer and collect payment from buyer’s bank through our correspondents banks.
• Handling of Collections in banks worldwide are governed by “Uniform Rules for Collection” - ICC publication no. 522

Commercial Bank issues, amends and honors claims on various kinds of Guarantees. These are given by one party to a contract to protect another party against loss or violation of the contract. These products are as parts of contracts for exporting goods and services, may be used to guarantee a performer's obligation to complete a specified job, for example, support a seller's promise to deliver goods. The Guarantee issuer is held liable for financial damages but not for specific performance. A standby letter of credit may also be used in connection with the transaction.

The Commercial Bank of Kuwait issues the following types of Guarantees on your behalf:

• Performance
• Tender
• Advance Payment
• Retention
• Purchase
• Telephone
• Car
• Banking Facility
• Standby Letters of Credit
• Counter Guarantees