Letter of credit document preparation service

 

Export letters of credit

A documentary letter of credit is simply an undertaking issued by the buyer`s bank, to the seller to pay for their goods, provided the seller presents documents which fully comply with the terms & conditions of the credit. A documentary letter of credit can be known as a letter of credit or L/C or D/C or just credit. They all mean the same thing.

Do you trade on letter of credit terms or have you been put off & just don’t want to use them?  If you can get paid up front or in stage payments, then there is no reason why you should. You can`t get any better terms than payment in advance before you ship the goods. 

Opportunities

However you may be losing opportunities by insisting upon full payment in advance. The buyer will be taking a risk in effecting payment before the goods are even shipped. How does the buyer know that you will honour your obligation in shipping the goods.? By trading on letter of credit terms it gives the buyer some re-assurance that you cannot get paid without shipping the goods.  

If you`re selling overseas & are looking for a secure means of getting paid, then you need to seriously consider about trading on letter of credit terms.

Whilst letters of credit gives the seller a high degree of security, the complexity & difficulty of producing & presenting compliant shipping documents can be intimidating.

Don`t forget that getting a letter of credit from the buyer is just the first hurdle. The key is getting the documents right & all could be lost if the documents are discrepant. That is the ultimate challenge!

Our Export services

This is where we come in. Synergy in Trade is able to offer you a letter of credit documentation preparation service to take all the hassle away.

We will take care of your letter of credit from the outset

Synergy in Trade will:

  • If necessary, review the underlying contract
  • provide a draft of the credit to assist the buyer.
  • liaise direct with the buyer & ensure that the credit is workable & meets your needs.
  • once the credit has been issued, we will check it to make sure that you are fully protected.
  • if the L/C requires amending, provide an amendment request on your behalf.
  • we can guide you regarding bank confirmations, and discounting of documents & direct the L/C to the most appropriate bank equipped to handle your L/C. This is important. We have many contacts in the banking fraternity; they recognise the benefits we offer our clients.

Upon shipment we will:

  • liaise with your shipping company or you may use ours to ensure that the shipping instruction meets the credit terms
  • obtain draft documents from the shipping company prior to issuance to ensure it meets the L/C requirements.
  • check third party documentation such as insurance certificates, inspection company certs or alike to ensure that their documents will be compliant.
  • produce all the shipping documents required & present them to the bank.
  • we monitor the entire transaction until successfully paid.

Preparation of the shipping documents requires meticulous care & attention to detail. Staff handling this type of work needs thorough knowledge & experience in freight & the banking industry. This is where Synergy leads the market. We are staffed by a team of ex international trade bankers with over 150 years of experience between us of handling letters of credit. You need someone reliable & knowledgeable to handle your work. We can be completely trusted & will never let you down. We have our reputation to live up to.

Benefits:

It will save you time and money.

  • You can get on with running your business, knowing your export L/C is in good hands
  • Improve your cash flow, proceeds of your export sale will be in your account quickly.
  • Reduce unwarranted bank fees.
  • You don’t have to worry, you have experts in the field to monitor the transaction right to getting payment.

Download our letters of credit flyer for further information.