Letter of Credit (LC)
Letter of Credit Benefits
Letter of Credit Benefits to Your Company (the Buyer)
- No cash is tied up in the process. The buyer does not have to pay cash up front to a foreign seller before receiving the documents of title to the goods purchased.
- The buyer can build safeguards into the letter of credit, including inspection of the goods and quality control, and set production and delivery times.
- Maximizes control of documents for customs clearance.
- Increases your competitiveness in foreign markets.
- Creates efficiencies and protection from loss.
- Expands your company's business opportunities.
- Minimizes risk, maximizes control, and optimizes profits associated with international trade.
Letter of Credit Benefits to the Seller (the Beneficiary)
- The Beneficiary is assured of payment as long as it complies with the terms and conditions of the letter of credit.
- The credit risk is transferred from the Buyer to the Issuing Bank (i.e. it is obligated to pay even if the Buyer goes bankrupt).
- Provides the Seller easier access to financing once the letter of credit has been issued.
- Allows the Seller to transfer partial or full value of the letter of credit to other parties (e.g., to purchase raw material).
- The Beneficiary minimizes collection time as the letter of credit accelerates payment of the receivables.
The Beneficiary's foreign exchange risk is eliminated with a letter of credit issued in the currency of the Beneficiary's country.
For more information, please contact to EURO CAPITAL in PARIS:
La Grande Arche de la Défense
92044 La Défense, PARIS
Email : firstname.lastname@example.org
Tel: +33 6 74 58 26 65 / +33 1 48 41 07 51
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