LETTER OF CREDIT
As a suitable payment mechanism used in international trade, we offer both commercial letter of credit and standby letter of credit to provide a financial guarantee from top tier banks to exporters worldwide. In financing international business, our agency provides you with these letters as an underwriter because it covers the credit risk of the buyer paying the seller.
We can provide you with an unsecured letter of credit. That means you don’t need to tie your cash or other collateral to acquire a letter of credit from Trade Finance Capital.
Commercial Letter of Credit
Aims at considering the interest of both the buyer and the seller
As a standard means of payment in international trade, the beneficiary is usually the provider of goods or services. A commercial letter of credit is a contractual agreement between an issuing bank and another confirming bank. Here, the issuing bank authorizes the other bank to make payment to its customer.
There’s always the fear of uncertainty when it comes to exporters making payments to unknown companies. The risk of investing cash in producing and exporting goods without any evidence of deposit or a bank letter of credit has kept producers uncomfortable. That’s where the commercial letter of credit comes in; the letter allows buyers to pick the choicest alternative. With our services, you can get bank letter of credit guaranteeing that you'll receive the proper amount in due time.
Inversely, most importers can’t venture into making transactions with unwilling foreign suppliers because their payments may not correspond with purchase order specification. Without this commercial letters of credit, almost all buyers will postpone their payments until they see the goods. It perfectly saves the risk of losing the deposit.
Standby Letter of Credit
Irrespective of the fact that Standby bank letters of credit are used to provide financial security for a long-term contract, the letter of credit cost usually varies. In more significant agreements between two parties, a standby letter of credit must be provided before transactions can proceed. The primary benefit is this; the standby letter of credit places a favorable guarantee to the beneficiary that the bank will make the payments if the counterpart isn’t capable again. Our agency provides a pocket-friendly letter of credit cost.
TFC offers a standby letter of credit that’ll make your transactions non-risky.