Quote:
Originally Posted by Unregistered
" " " irrvocable confirmed documentary credit
This is one of the uses of an Irrevocable Letter of Credit (ILOC). The term you are referring to could best be explained by a
banker that issues ILOCs.
You need to clarify the term slightly. A standby letter of credit can be used in place of a bond and can be called against a statement of default. An Irrevocable Documentary Letter of Credit is a primary means of payment that is paid against presentation of stated documents usually invoices and shipping documents. The 'Confirmed' term refers to the fact that it is issued by a bank and in instances where that bank doesn't have a local presence in the beneficiaries country the credit can be confirmed by a local bank. This has the effect of transferring issuing bank risk from the issuing bank to the confirming bank, usually because the beneficiary is happier to present documents locally for payment, often to their relationship bank.
Quote:
Originally Posted by Unregistered
" " " advance payment guarantee
A guarantee from a bank for security against an advanced payment a developer makes to their
contractor. Once again, this could be best explained by a
banker.
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An advance payment guarantee covers repayment of specified advances made under a contract. These advances may cover immediate liquidy requirements to allow for purchase of materials for instance. It would be usual for the Advance Payment guarantee to reduce on certain milestones or deliveries depending on the contract type. If you can be more specific we can provide a more specific answer