Prepare Letters of Credit correctly to secure payment guarantees

Letters of Credit are one of most trusted methods of payment used when trading overseas.

But to provide that level of assurance your Letter of Credit needs to be prepared and checked thoroughly. Do the Letter of Credit requirements completely meet the conditions of the contract? Is the Letter of Credit workable and operable on receipt? Can the physical, documentary and timing requirements be met?

Our extensive export documentation experience means we can advise on what should be included in:

• Standby Letters of Credit. Essentially bank guarantees which are cashable on demand if your customer fails to pay you by the date specified in the contract.
• Documentary Letters of Credit. A guaranteed payment which falls due once goods are shipped, but only if the right documents are issued according to the Letter of Credit conditions.

Our role is to meticulously examine the wording to ensure the final Letter of Credit is fully contract compliant. We will then liaise with all parties to ensure that the shipment goes though correctly while also obtaining the compliant documents to allow the payment to be made.

The best time to sort your Letter of Credit is during the contract agreement stage so contact us then for help. We’ll make sure it conforms to all the financial and operational conditions required.