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Secure Letters of Credit

Facilitating secure international trade with reliable Letters of Credit. We ensure payment certainty and trust between global trading partners.

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Service Overview

A Letter of Credit (LC) is a financial instrument issued by a bank that guarantees payment to a seller, provided that the terms and conditions specified in the LC are met. It is one of the most secure methods of payment in international trade, as it shifts the payment risk from the buyer to the bank. We assist businesses in structuring and obtaining LCs to facilitate smooth and secure global commerce.

Types of Letters of Credit

  • Irrevocable LC: Cannot be changed or cancelled without the agreement of all parties.
  • Confirmed LC: A second bank (usually in the seller's country) adds its own guarantee of payment.
  • Standby LC: Acts as a secondary payment method if the buyer fails to pay.
  • Revolving LC: Covers multiple transactions over a specific period.
  • Transferable LC: Allows the beneficiary to transfer part or all of the credit to another party (e.g. a supplier).

Required Information

  • Details of the buyer (applicant) and seller (beneficiary).
  • Description of the goods, quantity, and price.
  • Shipping and delivery terms (Incoterms).
  • Required documents for payment (e.g. Bill of Lading, Commercial Invoice, Packing List).
  • Expiry date and latest shipment date.

Process / Workflow

  1. Agreement: Buyer and seller agree on the terms of the sale and the use of an LC.
  2. Issuance: The buyer's bank (issuing bank) creates the LC based on the buyer's instructions.
  3. Advising: The LC is sent to the seller's bank (advising bank) and then to the seller.
  4. Shipment: The seller ships the goods and collects the required documents.
  5. Presentation: The seller presents the documents to their bank for verification.
  6. Payment: Once documents are verified as compliant, the issuing bank releases payment to the seller.

Benefits of the Service

  • Payment Security: Sellers are guaranteed payment if they meet the LC terms.
  • Creditworthiness: Buyers can use the bank's credit to secure goods without upfront payment.
  • Conflict Resolution: Banks act as neutral third parties to verify document compliance.
  • International Standard: LCs are governed by globally recognised rules (UCP 600).

Secure Trade

Facilitate your international trade with confidence. Get expert help with Letters of Credit.

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