The first deal to purchase a car from China using a letter of credit has been completed in Russia. Sberbank and the importing company Terminal A acted as participants.
A letter of credit is a payment method in which the bank freezes the buyer's money and transfers it to the seller only after all the terms of the transaction are fulfilled. For example, when buying a car, it is important that it is not damaged, meets the stated characteristics, and has passed all customs procedures.
This payment method reduces financial risks for both the buyer and the seller. International deliveries become more transparent and secure.
A letter of credit has long been the norm in settlements for medium and large businesses. It is an inexpensive, fast, and convenient tool.
Yuri Ten, the founder of the importing company, noted that buying a car abroad involves many risks, and the use of a letter of credit in such transactions should become commonplace, just like opening escrow accounts when buying real estate.
Read more on the topic:
What awaits the Russian car market in 2025
New Russians: New products of the domestic auto industry in 2024
A decline to the level of 2016 is possible in the Russian car market
