Letter of Credit Services

Letter of Credit Services

With us managing your Letters of Credit, you can boost your export sales, access more export markets, reduce bank charges and improve your cash flow.

What is a Letter of Credit?

Also commonly known as a Documentary Credit, a Letter of Credit (L/C) is a secure way of you, the seller, being paid by your customers. In short, it is a guarantee of payment given by a bank that says if you satisfy the terms, conditions and documentary requirements set out in the Letter of Credit, you will be paid the agreed amount.

Statistically though, over 70% of documents presented for payment against a Letter of Credit are found to be discrepant. This often results in delayed payments and can affect cash flow.

This is because Letters of Credit can be complex and it’s essential that anyone managing an L/C shipment or producing any L/C documentation is experienced and knowledgeable in the rules and processes.

How we can help your business

After managing thousands of Letters of Credit spanning over 30 years, we have gained vast experience in managing L/C’s and producing accurate and compliant documentation on behalf of our clients.

We believe companies like yours shouldn’t shy away from using Letters of Credit. As long as they are set up and managed properly from the outset, the benefits far outweigh any drawbacks. Accepting L/C payments can result in new export opportunities for your business, such as markets where this type of payment is common or sometimes mandatory.

Our attention to detail and confidence in handling L/C transactions means we make a guarantee to produce and present compliant documentary presentations on your behalf. This gives you the reassurance that payment will be received as quickly and efficiently as possible.

Our L/C services are tailored to meet your needs. We offer bespoke options from offering document checking up to a full and comprehensive L/C management service. We can offer whichever service benefits your business and eases the burden on you and your staff.

What our Letter of Credit management service includes

  • Ensuring the terms of the Letter of Credit are workable prior to it being issued, thus avoiding the need for time consuming and expensive amendments
  • Advice on Incoterms® and the appropriate associated documentation
  • Checking the formal L/C advice upon receipt to make sure the terms are as agreed before any goods are shipped
  • Preparing compliant documents as required under the terms and conditions of the L/C
  • Liaising with any necessary third parties (freight forwarders, carriers, insurance providers etc.) to co-ordinate issuance of compliant documents required under the L/C terms
  • Arranging approval/certification of documents where required
  • Arranging despatch of non-negotiable copies of documents and sending shipping notifications on your behalf
  • Collating and presenting of documents to the appropriate bank
  • Following up with the negotiating/confirming bank to ensure acceptance of documents and expected payment dates

What our Letter of Credit services cost

Our full Letter of Credit management services can cost from as little as £350+VAT. We also offer discounts for ongoing L/C management and documentation services.

We would recommend getting in touch with us to discuss your particular needs as each Letter of Credit transaction is unique. We consider factors such as the destination country and documentary requirements before proposing a fee. We don’t base it simply on the value of the L/C either, as this won’t be a true reflection of the work involved

The benefits

  • Access to new export markets
  • Increased turnover and profit
  • Faster payment and improved cash flow
  • Reduced Bank charges
  • Elimination of payment risk
  • More time to concentrate on your core business activities
Get in touch today for your free, no obligation quote.