Letters of Credit

A Letter of Credit is a payment term mostly used for long-distance and international commercial transactions.

We particularly recommend Letters of Credit (LC) in untested business relationships where you want to avoid advance payment, where you want to get credit from the supplier or when you order custom-made equipment.

Benefits of using a Letter of Credit

  • Secure and quick payment
  • Starting signal for manufacturing
  • Cannot be revoked without the consent of all parties
  • Financing outside own balance sheet
  • Governed by international rules (International Chamber of Commerce)
  • Expands your export markets with safer payment terms