Are you a trader who actively imports goods from overseas and supplies it to the local market? Have you kept your trading business under hold due to financial crunches? Be ready to kick start your import-export business by using LC Payment Terms. Further, this video talks about “How to Open Letter of Credit at ZERO Collateral” Watch the video given or read the blog now to learn the Letter of Credit Process to open MT700 on behalf of your company.
What are LC Payment Terms?
LC Payment, the most popular payment method used in international trade transactions, as the buyers and sellers involved in trade transactions mostly prefer to use LC Payment Terms to conclude their imports.
An LC is a commitment made by a bank on behalf of the buyer to ensure the supplier that the payment will be made; once the terms and conditions stated in the issued LC are fulfilled. Having LCs gives confidence to the buyer that the payment will be made to the seller, only after the successful delivery of goods as agreed in the contract. Further, this also assures the supplier that they will receive the payment, even in case of buyers default.
Import Goods without Paying Your Supplier Upfront – Apply Now!
How to Get LC Payment Term?
Since LCs are the financial instruments, the banks use the buyer’s financial assets available with their banks to open the required MT700. In case, if they face a lack of credit facilities or are unable to provide a cash margin, then they can’t able to avail the DLC issued from their bank.
Simple 5 Step Process to Open LC in 2 Days – Apply Now!
Here comes the importance of getting help from private trade finance providers. Further, if a client faces a lack of cash funds or bank facilities; let they can contact us with their LC request, then we will:
- Firstly, analyze and then, approve their LC request.
- Next, we will ask them to sign the service agreement with us; also, pay the admin charges to initiate the LC request with our bank.
- And then, we will send the Letters of Credit draft for the client’s approval. Further, the client will check the LC draft and verify with their supplier whether they can be able to comply with the LC terms mentioned in the draft. Finally, the client will convey their draft approval to us.
- Further, after the LC draft approval, we will inform the client to pay the LC issuance fee charges to proceed with the MT700 issuance.
- Finally, once the issuance fee charges are paid, we will instruct our bank to issue the DLC from our bank account on behalf of the buyer and in favor of the seller.
From this step-by-step process, you may come to know the fact that – We use our own credit facilities available in European Banks to open DLC on behalf of the buyer. So there is no need to provide a cash margin to avail DLC from well-rated banks.
How to Open LC – LC Payment Term?
If you’re looking to open Letters of Credit – DLC MT700 – LC at Sight to import goods from overseas; then submit your request to us & get the MT700 issued without collateral!
