Exporter Services offers a comprehensive support service for anyone requiring assistance with Letters of Credit.
An often-misunderstood method of payment, Letters of Credit carry a guarantee of payment which allows businesses to trade in some difficult economic climates as well as adding security to larger contracts. Buyers do not always wish to pay on Advanced Payment and the Seller will always require a guarantee that payment can be made.
Opening and advising banks act as intermediaries between the buyer and seller, however they can only pay if the documents are in order and fully compliant with the rules and the Letter of Credit.
It is reported that approximately 75% of Letters of Credit are presented with discrepant documentation meaning that the bank guarantee is no longer in effect as the documents do not comply with the rules. This in turn leaves the beneficiary exposed regarding the payment as it is in the hands of the buyer to approve and accept the discrepancies. The buyer/applicant can be frustrated if the discrepancies cause delays in clearing the goods though ports and airports.
We at Exporter Services offer a complete service from assisting with the opening of the Letter of Credit so that it is a workable document to begin with. We can then arrange shipping, if required, or can liaise with the applicants’ carrier to receive the compliant transport document. This allows for the preparation and presenting of documents to be made in line with the requirements of the Letter of Credit.
Once the documents are “clean” the payment will be made, and the buyer will receive their documents.
If you would like to investigate how this would work for you then please do not hesitate to contact us.