A documentary letter of credit is very often used in foreign trade operations to secure payment for goods. The use of this facility mitigates the risks associated with dishonest business partners and is primarily used when dealing with new business partners. A documentary letter of credit is a contractually independent obligation and, thanks to our internal handling procedure, is efficient and safe for the principal.
The letter of credit is issued by the bank at the request of the buyer and in accordance with his instructions. In it, the bank undertakes to pay a certain amount to the seller. However, it does so on condition that the seller presents and submits to the bank a set of documents proving that he has fulfilled his contractual obligations and other documents required by the buyer.
We specialise in the efficient handling of letters of credit, which will protect you from:
- lost time preparing complicated documentation
- delays in unloading the goods
- freezing of funds due to blockade of cargo
- additional costs related to prolonged storage of cargo in the port of destination
- loss of confidence of your trading partners
Before opening the letter of credit, it is advisable to contact the forwarding company in advance in order to avoid possible amendments and changes to the letter of credit after its opening and incurring additional costs related to making changes.
After the letter of credit has been opened, it is advisable to contact the forwarding company again to check the possibility of meeting the requirements, deadlines and the possibility of preparing additional documentation according to the requirements contained in the opened letter of credit.
By using our services, the customer can count on acting in accordance with UCP 600 standards, as well as knowing all the requirements imposed by banks and institutions validating and certifying the cargo. Our services are aimed at all exporters, and are currently most popular with companies sending goods to North Africa and the Near and Far East.
