An Import Letter of Credit is the collection of a sum of money due from a buyer to a bank against delivery of certain documents. The bank, acting as trustee and intermediary between exporter and importer, presents documents – by order of the exporter – which are proof of the actual delivery of a product or service rendered, and in exchange receives payment of the amount owed or obtains acceptance of a bill of exchange.
If you import goods, protect both yourself and your supplier with an Import Letter of Credit, a secure payment method for settling international trade.
A Letter of Credit also known as Documentary Credit is controlled through the banking system. It means your supplier has to provide specified documents to a bank in order to get paid.
It’s a commitment from the guarantor (the bank that guarantees that the agreed compensation amount will be paid if the applicant fails to meet its contractual obligations) to supplier stating it will receive payment within a set time limit, as long as clearly defined terms and conditions have been met.
We can provide you with a Letter of Credit issued on your behalf to provide a secure means of payment to your international suppliers. The beneficiary of the Letter of Credit, your supplier, will only receive payment if they present documents that comply exactly with the terms and conditions of the Letter of Credit.
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