1 / 6

Know Everything About The Letter Of Credit Service

It in short, is a letter from the bank that guarantees the form of payment from a Buyer to the Seller. It also details if the payment was received on time and the amount mentioned is a 100% accurate. If the Buyer fails to complete this payment, the bank is mandated to cover the amount of the purchase made.<br>

greaterbirmingh
Download Presentation

Know Everything About The Letter Of Credit Service

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Know Everything About The Letter Of Credit Service

  2. It in short, is a letter from the bank that guarantees the form of payment from a Buyer to the Seller. It also details if the payment was received on time and the amount mentioned is a 100% accurate. If the Buyer fails to complete this payment, the bank is mandated to cover the amount of the purchase made. In case you have more questions and are curious about how the Letter of Credit Service works, you can log on to www.greaterbirminghamchambers.com. The experts there not only detail you about the process, but also reveal variety of information like the benefits of the Letter of Credit, who pays for it, the required duration of time to apply and receive this letter, documents required for it, types of letters of credit service, etc. You must submit all your relevant details such as: 1. Details of the beneficiary 2. The date of filing the application 3. Exact payment amount 4. Commercial invoice stating the proof of value 5. Bill of lading, stating the proof of shipment

  3. 6. Certificate of Origin 7. Certificate of Inspection 8. Certificate of Insurance 9. Packing List detailing the proof of packing 10.Certification of health of the product being imported 11.Embassy certified documents of the Buyer, in case the buyer is a foreigner 12.Draft or Bill of Exchange Following are the advantages of having a Letter of Credit service, when you are a Buyer: 1. You do not have to deal with any prepayment requirements 2. You have to create an image of you being financially strong and stable so that your payment capabilities aren’t questioned 3. You experience an ease in operations while dealing with companies abroad, especially when the questions is related to delays in delivery and payment

  4. 4. The Bank doesn’t initiate the payment unless you meet the time and deadline of your package, as per the agreement. The bank holds the payment in case of discrepancies 5. A deferred payment mechanism can be opted by the Buyer if you have been issued the Letter of Credit, as it portrays you to be someone who is worthy of being granted a Credit Following are the advantages of having a Letter of Credit Service, when you are a Seller: 1. You will always have the security of payments. The Letter of Credit divides the risk of trade evenly between the Buyer and the Seller 2. Even if quality complaints that are plain hoax are lodged with regards to the goods or package, you will still receive your payment if you have complied with all the terms of the contract 3. The risk of you incurring losses because of production, a cancellation or an unforeseen change in the order cost minimizes to half

  5. These Letters of Credit Service are of varies types as well. Hence, read the following and make your pick wisely: 1. Commercial Letter of Credit: The issuing bank makes the payment to the beneficiary 2. Revolving Letter of Credit: The customer can draw any number of times within a specified time frame and limit 3. Traveler’s Letter of Credit: This guarantees that the issuing bank will always honor drafts made at foreign banks 4. Confirmed Letter of Credit: Involves a bank, typically the Seller’s bank, other than the issuing bank.

  6. Contact Us:- • Company Name: BIRMINGHAM CHAMBER OF COMMERCE AND INDUSTRY • Phone Number: 0121 454 6171 • Website :https://translations.greaterbirminghamchambers.com/

More Related