Instead of an L/C the financing bank XYZ, Germany will issue an “irrevocable Confirmation payment order” in Exporter's favour, covering the 75 % and 10 % of the purchase value. This document should serve also under Exhibit B in the a.m. contract .
Is it workable ?
Summary: An "irrevocable Confirmation payment order" is not a standard, globally regulated instrument like a Letter of Credit. Its viability is not guaranteed and depends entirely on the specific legal language of the document and the willingness of your bank to accept it. Consult a trade finance professional or your bank before proceeding to ensure your payment security is not compromised.
Fytomax Nutrition Private Limited
Aurangabad
CA Inter
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Varma Raja & Associates
Thrissur
CA Inter
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CCI
Pro
CAclubindia
