Import letter of credit

For the companies who wants to secure their transaction and the efficient shipment of the imported goods as per the signed contract and before to effect any payment the letter of credit is the answer as a form of security of payment in international transaction.

The importer and exporter deal in confidence; the banks undertake to check transport document and confirm payment in accordance with the terms and conditions of the Letter of Credit

The Import Letter of Credit guarantees payment for the exporter (the supplier) and allows better cash management for the importer ( the buyer). When you want to take on larger orders to import goods from different suppliers and you cannot obtain terms without leaving a deposit, the solution is to offer your supplier a commercial Letter of Credit (“LC”) instead of a deposit.

This gives your supplier a bank guarantee, which is an asset they can often use to obtain funding directly from their bank as well as advantageous commercial negotiation.