Letter of Credit
International trade | Trade with confidence
1 (800) 317-4933
A Letter of Credit allow our client to trade with confident when an L/C is stipulated. A Letter of Credit issued on behalf of the importer (buyer) can conditionally guarantees payment to the exporter (seller) provided that documentation submitted by the exporter complies with the terms and conditions of the L/C.
LETTER OF CREDIT INSTEAD OF PO FUNDING?
A Letter of Credit can sometimes serve the same purpose as a purchase order financing facility, for example, a client would like to receive cash payment against the PO, so that they can cover expenses, including, procure raw materials, etc.?
Unfortunately in many instances a PO
funding facility many not meet the criteria, however, a letter of
credit may offer the right solution.
HOW IT WORKS?
The client (You) is issued an L/C against
the order it receives from its customer. Our client then uses this
L/C as collateral to borrow from their bank. Then our client
ships, draws on the L/C and invoices it’s customer. We then
put together a factoring facility which factors those invoices.
The actual structure is put together along these general lines, with
some modifications to fit the specific requirements of the client.
For more information, please contact us
more info