Letters of Credit
Let us take the risk and hassle out of Letters of Credit
Letters of credit can be complex and are often poorly structured. It is therefore of no surprise that up to 70% of first time export letter of credit presentations are discrepant placing payment at risk for the seller (LC beneficiary).
Feedback from many exporters is that it can often take three weeks or more to receive payment on letters of credit. However, if the LC is correctly structured, payment, discount or negotiation finance should be available within 3 business days of a complying presentation, irrespective of whether the LC is payable at sight or at term.
Because banks are not responsible to check the accuracy or genuineness of documents, the buyer (LC applicant) will be obliged to reimburse its bank for payment made under an import letter of credit, even though the goods do not conform to their purchase order, or the merchandise is of poor quality.
It is important therefore that early advice is sought from a specialist, such as AXS Trade Finance to help structure the terms of the letter of credit.
Click here to view the key aspects of a letter of credit
Let us handle your letters of credit leaving you to focus on the business of purchasing, selling, and shipping.
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