Letters of Credit have certain advantages in foreign trade transactions not only for exporters but also for importers.
Some Advantages of Letter of Credits for Exporters.
- Letters of Credit give comfort to exporters regarding the payment. Exporters know that as long as they comply with the terms and conditions of the Credit they will be paid.
- Payment guarantee is given by a Bank.
- Exporters can demand from an another bank to add its guarantee to the Credit in order to overcome various risks such as political risk.
- Conditions of the Credit will not be changed without the permission and consent of the exporter as long as credit is irrevocable.
Some Advantages of Letter of Credits for Importers.
- Importers can negotiate for more favourable terms with the Exporters if Letter of Credit is offered as a payment.
- Importers know that exporters will not be paid unless they comply with the terms and conditions of the Credit.
- Importers can use Letter of Credit as a finance tool to finalize the transaction.
Majority of the international trade companies especially SME could not be benefited from these advantages as Letter of Credit is one of the most complex field in international trade. Unfortunately not every company could hire a LC expert to deal with LCs professionally. That is the reason why LC Consultancy Services has been founded. Supply best LC expertise available to international trade companies especially SME with unbelievable competitive prices.
Have you ever come to the conclusion of not using Letter of Credit in your business one of the reasons below.
- No clear idea how LCs work
- Lack of professional staff to handle LCs
- Rejection of your documents by banks
- Discrepancies that have found on your documents can not be fixed for timely presentation
- Discrepancy fees arising from the incorrect documentation
- The fear of not getting paid at all due to discrepant documents
None of these excuses should justify choosing risky payment methods in international trade. We are ready to supply you highest LC expertise with very considerable fee. Whether you are an exporter or an importer all you need to do is contact us and explain your situation. We will guide you throughout the LC operation from beginning to end to make sure that the transaction is completed without any problem.