Not exhausted anxiety even if there is a letter of credit (L / C) in the export business
In export business, it is to become a leading role in the preparation stage, also letters of credit (L / C: Letter of Credit), but it is "El Sea".
In trade transactions with foreign countries, exporters are importers of credit research in remote areas may not be sufficiently.
But was able to tie finally to contract, really wonder me this importer pays the price of cargo?
In addition to get prepaid remittance the price, to no payment of guarantee from the importer, I wonder can not be peace of mind ....
And for us to eliminate this anxiety, I letters of credit (L / C), but ....
by TW Collins
Letters of credit and (L / C) is that importers of purchase guarantee of banks that get issued ask the bank.
Exporter is not to receive the money directly from the importer, Have the purchased the cargo at once L / C issuing bank.
We are now on the system that receives the money from the bank, the exporter are able to receive reliable price.
From a function of the letter of credit (L / C), but the exporter has become a system that can receive the reliably price, it may not care must be taken.
In the preparatory stage of export, the exporter will be Yuku complete the export procedures in accordance with the contents of the letter of credit (L / C). If the letter of credit (L / C) is delivered from the importer, exporter How can such a place that would be relieved, that also do not forget that there is a note in the L / C transaction!
- Whether issued by the bank that such a place reliable?
- Or issued by the Bank of whereabouts country is all right?
Also identify these is important.
You should be careful when political and economic conditions and business partners an unstable country.
I previously, there was a thing that has been rejected by the Japan Bank of the purchase of letters of credit (L / C), which was received from a certain country.
Letters of credit (L / C) of the issuing country economy has significantly deteriorated, it the country of foreign currency was on the bottom.
Will not be able to have the receipt of the order price, it became fit to be recovered in the trade insurance ....
The world situation today, we can not say never and stable!
Political and economic situation of the state, that also affects the reliability of the letter of credit (L / C) to open the the country, do not forget it! !
- Put on more reliable degree of a confirmation of a third country bank (Confirmation) letters of credit (L / C)
- It insured the trade insurance
If you are concerned for the customer even a little, in addition to the Thus letter of credit (L / C), it is might be better, which had been considering various measures.