Letters of Credit
A documentary Letter of Credit is 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 which comply fully with the terms and conditions
of the documentary credit.
There are different types of Letter of Credit including
Confirmed Irrevocable Letter of Credit, Irrevocable Letter of
Credit, Transferable Letter of Credit, Back to Back Letter of
Credit, Standby Letter of Credit.
You should be aware that whilst a Letter of Credit offers
considerable security for the exporter there may be substantial
bank charges involved in being paid by this method and therefore
any initial quotation should take these charges into
consideration.
How we can help
Preparation of all documents called for by a Letter of Credit
requires meticulous care and attention to detail.
Staff undertaking Letters of Credit need knowledge of both the
shipping world and the banking industry. They also need ongoing
update training.
We will take care of your Letter of Credit from the outset. This
includes:
- creating all your paperwork for you
- arranging transportation or liaising with your freight
forwarder
- liaising with any other third parties such as inspection
agents
- checking that all terms can be complied with and advising any
amendments that we see necessary
- submiting all necessary documents to the bank on your
behalf.
Download our Letters of Credit Flyer
for further information.