On: May 20, 2019 By: Chris Lidberg
Too often sellers don’t give much thought to the actual terms and conditions in their letters of credit. This is a mistake, since it can cause all sorts of problems including granting buyers access to their goods before you even get paid.
On: April 29, 2019 By: Chris Lidberg
One of the reasons a company uses letters of credit (LC) is because they assure payment. But in order for payment to be received, your documents must comply with the terms of the LC. In order to meet that requirement, you need to carefully review it before you ship your goods. Here's what to look for.
On: October 15, 2018 By: Chris Lidberg
Of the four primary export payment options—cash in advance, open account, letters of credit, and collections—you can only forecast when you might receive payment with two of them: cash in advance and letters of credit. Payment under collections and open account is at the discretion of the buyer.
On: April 10, 2017 By: Chris Lidberg
Since most banks won't issue back-to-back letters of credit, here are two alternatives: a transferable letter of credit and an assignment of proceeds.
On: June 24, 2016 By: Chris Lidberg
When applying for a letter of credit for your exports, you want to make sure you get letters of credit that meets your needs. To do that, you must tell the buyer how they should issue the letter of credit. Here is some important information you'll want them to include on the L/C.
On: October 26, 2015 By: Chris Lidberg
While back-to-back letters of credit protect the middleman in an export transaction, banks are wary of this arrangement because it puts them at risk.
On: June 4, 2006 By: Chris Lidberg
It is not uncommon to receive a call from your bank telling you they checked documents against your letter of credit and that discrepancies have been cited. Here's how you may want to respond.
On: January 22, 2006 By: Chris Lidberg
Once a letter of credit (LC) is issued and the beneficiary has had a chance to review the document, the need for an amendment may become apparent.
On: September 1, 2003 By: Chris Lidberg
You must meet the terms of a letter of credit in order to get paid. Here are the types of discrepancies that can cause problems with the bank.
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