Trade Leads



Letters of Credit
Walter Tracy
 

Letter of Credit


Be sure that all financial arrangements are sound.

The L/C (LOC) is issued by a bank to the importer. The issuing bank guarantees to pay the exporter the stated amount if the terms and conditions of the L/C are met. These terms and conditions cover:
  • The documents to be furnished as proof of supply of goods
  • The place of presentation of these documents
  • The time limits within which the documents should be presented
The L/C protects both the importer and the exporter.
  • Importer Protection - Payment only made when all the terms and conditions are met
  • Exporter Protection - Payment guaranteed when documents are furnished