A letter of credit is a method of payment which plays an important role in international trade. It is generally considered that the L/C offers a secure balance between the seller and the buyer, as the L/C relies on the security of banks to ensure that payments are received and that goods are provided.
The procedures involved for an L/C are detailed and involve a great deal of expertise and knowledge. Atlas Group has a designated team to handle the step –by- step process, from the initial application to the bank up to the professional review of the finalized document. We guarantee that you will fully understand all of the terms and conditions.
In addition to the process mentioned above, there are key characteristics that need to be included in an L/C which require years of experience and diligence. Our team ensures that within your L/C there are terms for negotiability, irrevocability, transfer and assignment and bill of exchange (sight and time draft).
Overall, L/C’s are indispensable for international transactions and are a crucial aspect of international trade. Our expertise allows you to do business worldwide with peace of mind. Below are a few of the advantages for both sellers and buyers.
- Reducing the production risk
- Opportunity for finance between the period of shipment of goods and receipt of payment
- The buyer will not be able to refuse to pay due to complaint about goods
- The buyer can control the time period for the shipping of goods
- In case of a delayed payment, the seller grants a credit to the buyer