Letter of credit Singapore
Letter of Credit in Singapore
A letter of credit, or “credit letter” is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time with the correct amount. If buyer can’t make a payment, bank will be required to cover the full or remaining amount.
Letter of Credit is also known as?
Also known as a documentary credit or bankers commercial credit, or letter of undertaking, is a kind of payment used in international trade to provide economic guarantee from bank to an exporter for goods.
How Letter of Credit benefit one another?
Letter of credit (LC) is a major payment method in international trade because it benefits both parties in the transaction. As the buyer, you don’t have to pay until the documents are received in good order. Your seller is also comfortable because they will definitely be paid if they have complied with the terms of the LC.
What can you take back for Letter of Credit?
You’ll enjoy :
- Trust, because payment will only be made if– All stipulated documents are received in good order– All the terms and conditions of the LC are complied with
- Financing, which can be arranged for bills under LC
- Reduced risk for both commercial and foreign exchange
Did You Know?
- A company can have a few trade lines and make your business more flexible and efficient.
- One line, multiple products for both import and export use.
- Credit lines nowadays allow you to borrow up to 10 times the amount of security provided.
- It allows you to use Letter of Credit, Trust Receipt, Shipping Guarantee, Bills Purchase and Invoice Financing etc to meet your trading and business requirements needs.
- Up to 120 days and Interest chargeable only when you use the line extended to your company.
- Absolutely hassle-free application process.
- Click HERE > to find out more information on how to get your LC line today !