What Is a Documentary Letter of Credit?
A documentary letter of credit is very often used in foreign trade operations to secure payment for goods.The use of this facility helps mitigate the risks associated with dishonest business partners. It is primarily used when working with new business partners. A documentary letter of credit is a contractually independent obligation. Thanks to our internal handling procedure, it provides an efficient and secure solution 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 only if the seller submits documents proving fulfillment of contractual obligations. The seller must also provide any additional documents required by the buyer.
Why Choose Documentary Letter of Credit Services?
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 a Letter of Credit Handling
Before opening the letter of credit, it is advisable to contact the forwarding company in advance. This helps avoid amendments after opening the letter of credit and the related additional costs.
After the letter of credit has been opened, it is advisable to contact the forwarding company again. This helps verify the requirements, deadlines, and any additional documentation needed.
Why Work With Real Logistics?
By using our services, customers can rely on full compliance with UCP 600 standards and banking requirements.Our services support all exporters, especially companies shipping goods to North Africa and the Near and Far East.
