Letter of credit

Letter of credit is one of the traditional payment methods that is commonly used in international trade and the most essential advantage is to secure the fulfillment of sales contract obligations of both importer and exporter.

We offer the following services:

• Import letter of credit (covered, uncovered)
• Import letter of credit line
• Export letter of credit

When Letter of Credit is used?

• TRUST - Building trust between the parties in trade.
• INITIAL TRADE - For start-up business.
• PROPOSAL - Proposal has been offered from counter-party.
• BANK L/C LINE – Proposed by bank or bank L/C line is available etc.

Letter of credit in trade cycle:

Trade contract parties cannot execute the shipment of goods and the payment at one time due to long distance between themselves. Thus these 2 operations confront each other in terms of timing. Letter of credit allows parties oversee their liabilities agreed on the trade contract. Therefore, having this service enables our customers to obtain or negotiate mutually beneficial letter of credit terms and conditions.

Benefits:

• Comprehensive trade finance tool that International transfer + Guarantee + Low cost financing are combined.
• Transfers credit-worthiness of the buyer to the bank, which allows parties to negotiate better terms.
• Letter of credit is highly customizable. Both the trading partners can put in terms and conditions as per their requirements.

Letter of credit cycle:

Service terms & conditions:

Required documents:

• Import letter of credit application form /download/;
• Trade contracts /invoices/;
• In case of an uncovered LC, the loan related documents are required additionally.