Aval

How it is used

Use in negotiable-instrument finance; legal form and the guarantor's obligations depend on applicable law.

Example sentences

1. The exporter requested a bank aval on the accepted bill of exchange.

   The guarantee strengthens the documented payment obligation.

2. The financing bank reviewed the aval before purchasing the instrument.

   The purchaser examines who stands behind payment.

Common collocations

• bank aval
• provide an aval

Related terms

• bill of exchangeA written order from one party to another to pay a fixed amount to a named person, either on demand or on a set future date, used mainly in trade.
• guarantorA person or company that promises to repay a loan if the borrower cannot. The lender can then ask the guarantor to pay.

More terms: Trade Finance

• trade finance
• letter of credit
• letter of guarantee
• documentary collection
• forfaiting
• nominated bank
• reimbursement bank
• transferable letter of credit
• back-to-back letter of credit
• export credit agency
• payables finance