The importer’s bank issues a letter of credit available by deferred payment or by negotiation of term drafts in favor of the Russian exporter. The Russian exporter, having shipped the goods required by the letter of credit (or having provided the service), sells its claim under the LC to APB with a discount. The amount of the claim less the amount of APB commission shall be credited to the exporter’s account without recourse. Upon maturity APB receives the claimed amount from the importer’s bank. The service does not require a credit procedure for the Russian exporter.

India