Letters of credit

Our letter-of-credit model
Our letter-of-credit model

By presenting a document that conforms to a letter of credit an importer’s bank undertakes to make payment to an exporter. The Gracher Group offers you through a reputable German guarantor the opportunity of hedging your letters of credit at 50 %.

Our model offers you the following benefits:

  • Your bank collateral can be drastically reduced and the liquidity linked to it secured or increased
  • Your letter-of-credit facility is extended, enabling you to order larger quantities of goods. This boosts your turnover, for one thing, and lowers your cost of purchasing, for another
  • Your letter-of-credit facility is under less pressure
  • Your current account facility is extended, giving you additional financial freedom

The premium rate is dependent on credit rating and stands at about 1 – 1.5 %. This model has been successfully applied at a number of German lending institutions.

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