Establish your letter of credit with our advice

Do you want to develop your business in the international trade? Do you know how to establish letter of credit? Contact Credit-service to have help!
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The letter of credit or LC for short is like a bank guarantee that is used in the international trade. Indeed the international freight traffic has not the same level of security as the national freight traffic. How does this process work?

What is the definition of the letter of credit?

It's a document that proves a payment commitment. It allows to certify the successful implementation of the seller and the buyer. The bank is obliged, through this document, to pay the seller for the buyer.

Advantages of the LC in the international trade

The buyer allows the bank to give the purchase's price to the seller. If the seller gives the settled documents, the debt obligation is honored. Thus, the seller sends the goods only when a bank guarantees the payment and the buyers only pay when the merchandise is sent.

Revocable LC and irrevocable LC

The revocable letter of credit can be changed or canceled by the issuing bank without informing the beneficiary. This form of letter of credit doesn't give a sufficient guarantee and is only used between commercial partners that trust each other.

The irrevocable letter of credit needs the beneficiary's and the bank's agreement. If the beneficiary respects the conditions of the letter of credit, it will pay off with benefits.

Free non-binding offer

Do you want to extend your business in the international area? If you need help for the establishment of your letter of credit, don't hesitate to contact us with the below form! One of our advisers will contact you and propose you a free non-binding offer that corresponds to your needs.

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