We offer a fully managed Letter of Credit (L/C) service:
- Preparation of all shipping documents
- Advice on L/C terms and Incoterms
- Third Party compliance checks
- Bank presentation of all documents
What is a Letter of Credit?
A Letter of Credit is a banking mechanism that allows importers to offer secure payment terms to exporters. It’s an undertaking issued by a bank on behalf of the buyer to the seller, to pay for goods and/or services, provided the seller presents documents that comply fully with the terms and conditions set out in the Letter of Credit.
Provided the terms are met and the documents called are correct, the overseas bank has a commitment to make payment to the exporter. The bank is only interested with documentation, not goods.
Is there a standard Letter of Credit format?
No. There are several types including; irrevocable, confirmed irrevocable, transferable, back to back and standby.
Are there any drawbacks to using a Letter of Credit method payment?
Figures in the UK suggest that up to 75% of documents presented to a bank for payment under Letter of Credit, are refused for being incorrect. In order to get paid, the exporter must ensure the documents presented are 100% correct. We have an impressive 96% success rate on 1st presentation and 100% on 2nd presentation.
How we can help?
There is value in seeking help and advice from someone experienced. We offer a comprehensive Letter of Credit service and can advise you on all aspects of the transaction including;
- The type and terms of the Letter of Credit required
- Recommending any amendments
- Creating all relevant paperwork for you
- Presenting the correct documents to the bank for you
- Getting paid in full
Our team delivers a fully managed, comprehensive service and work hard to guarantee secure payment for your goods worldwide.
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