Letter of Guarantee is a promise by the bank independent of the underlying commercial transaction between the applicant and beneficiary. Issued directly in favor of the Beneficiary, the Bank is bound to make payment without delay, when it receives a demand that complies with the terms of the Guarantee

Following are the main types of Letters of Guarantee:

• A Bid or Tender Bond ensures that the bidder submits realistic bids and deters the bidder from rejecting to perform, in case the contract is awarded to them
• An Advance Payment Bond ensures repayment of an agreed percentage of the contract amount, if the supplier does not fulfill its contractual obligations
• A Performance Bond is issued to pay the principal, the agreed amount of the Bond, in case of failure of the contractor to perform the contractual obligations, under the contract awarded by the principal

Securely receive your goods before you (agree to) Pay.
Letter of Credit from Riyad Bank facilitates your purchase from your suppliers (locally and internationally) at better credit terms. Import Letter of Credit is a commitment given by the Issuing Bank to pay the Beneficiary on presentation of complying documents. The Import Letter of Credit sets out the documents to be provided and the conditions to be met.iyad Bank’s Letter of Credit is an agreement, promising to pay for the purchases/imports on your behalf against the submission of satisfactory documents and the meeting of specific terms by the supplier.

A Letter of Credit will give supplier the required security for finance under the terms agreed, meaning you can delay the payment for goods until after they are shipped and compliant evidence is provided by the seller.

Riyad Bank can also offer to issue a Guarantee to the Shipping companies that allow you to take delivery of the goods at destination ports supplied against our Letter of Credit, for which the documents have not yet been submitted to us.

Secure your receivables by ensuring compliant documents.
Export Letters of Credit facilitates settling trade payments through letters of credit issued in your favor by a local or an Overseas Bank. We assist in thorough document scrutiny, processing of LC Documents and collecting payment under the LCs, in addition to adding confirmation to the LC if requested. Export Letter of Credit is an instrument issued by the bank in favor of the supplier or the exporter on behalf the buyer or the importer, promising to pay the beneficiary after submitting the required documents and meeting the Letter of Credit terms as per underlying contract.

Riyad Bank acts as per your instructions for your purchases to secure goods and manage payment risks. 
Riyad Bank’s Islamic Letter of Credit is a Shari’a compliant method that enables you to import goods on the basis of Murabaha. It improves your importation process. Riyad Bank issues Islamic Letters of Credit on behalf of the importer as per the conditions and all information provided such as currency, amount, description of goods, payment type, required document and other terms.
Payment is then made against presentation of satisfactory documents which follows by Riyad Bank selling the imported goods to the client.

Quickly Convert your receivables into Cash by short term fixed rate funding.
Riyad Bank’s Special Trade Finance Products enables you to access funds and convert your trade receivables into cash.
Special Trade Finance from Riyad Bank is when you sell your outstanding import or export bills for a discounted price.

• LC Bill discounting: Riyad Bank offers to discount bills under Letters of Credit issued by main stream banks at competitive pricing, so that you get the payment for your supplies before the due date, without affecting your fund based credit facilities.
• Buyer’s/Supplier’s Credit Financing: Riyad Bank can structure buyer’s and supplier’s credit financing for your trade transactions so that the receivables can be converted into cash at an early stage of time

Banks act as intermediaries to the exchange of title documents for payment, and release the transport documents to the buyer once they have received either payment or an accepted Bill of Exchange promising payment at a later date.

provide intermediary services and become your designated and professional agent to collect payments from the buyer on your behalf but not obliged to pay as is the case under a letter of credit. 

Riyad Bank offers you e-banking solutions for Trade Finance products and services for quick and convenient online access

Riyad Bank call account service is designed to provide the companies with a safe and convenient way to manage and save while earning interest on average monthly balance closure.