Payment of international trade transactions by Documentary Letter of Credit (L/C) offers many benefits to both buyer and seller.
However often the mechanics are not fully understood and the governing rules incorrectly interpreted and applied the security of payment offered by the L/C can be instantly lost with adverse effects on cash flow.
KJCL has developed and excellent relationship with a special firm that has a wealth of knowledge and hands-on experience of negotiating Letters of Credit on behalf of our clients so why not take advantage of our L/C management service and enjoy the benefits?
The service includes: –
- Checking the L/C upon receipt to ensure compliance and specifying amendments if required
- Liaising with the appointed Freight Forwarder/Carrier to co-ordinate collection of goods, shipment and issue of transport documents
- Issuing transport document preparation instructions to the Forwarder/Carrier to ensure L/C compliance
- Preparing all documents required under the terms and conditions for each L/C
- Collating and presenting of documents to the appropriate bank
- Arranging approval/certification of documents where required
- Arranging despatch of non-negotiable copies of documents where required
- Notifying shipping details to consignee/local agent or representative by fax or e-mail
- Following up with each bank to ensure acceptance of documents
- Confirming acceptance of documents and associated payment date
Fees are always agreed in advance and not invoiced until confirmation of acceptance of documents has been obtained and you are therefore assured of payment. Download our Letter of Credit checklist here.
Benefits of Letter of Credit Management Service
- Faster payment and improved cash flow
- Reduced Bank charges
- Highly cost effective
- No payment risk
- More time to concentrate on core business activities
As with all our services, this can be tailored to meet your exact requirements. It can also be extended to include help and advice with the opening of Letters of Credit. We will prepare L/C opening instructions for your customers if required.
You are sure to benefit whether you just have to contend with the occasional L/C or many on a regular basis so why not contact us today to find out just how significant the benefits could be for you.
If you wish to have a free no-obligation initial discussion regarding your financing requirements please do not hesitate to call to discuss your requirements. We will then give a written brief of the potential solutions with full costings of the service to be provided.
Download our Letter of Credit checklist here.
Please contact us for a no obligation chat.