Give you more control
Payment is only made against documents you specify, an advantage when dealing with new suppliers. We’ll explain wich documents to ask for and how to word the terms.
Enhances your bargaining position
You could negotiate longer period and reduce costs on the basis of the benefits your supplier gains when you use letter of credit.
Improve your competitiveness status
Suppliers know that banks will only issue letters of credit on behalf of creditworthy customers, which can raise your competitive position.
How it works
Letter of Credit is issued on your behalf to provide a secure means of payment to your oversas 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.