Reduce the risks associated with making or receiving payment for goods

Importers

Key Benefits

• Able to control terms and reduce risk
• Can predict cash flow and price goods accurately
• Can negotiate for better terms
• Can obtain extended credit by having tenor LCs

Exporters

Key Benefits

• Payment assured without affecting own bank limits
• Enhanced competitiveness
• Predicted cash flow
• Exporter may save costs of other credit insurance
• Access to local help and advice
• Country risk eliminated by an accepting bank in exporter's country

Key Features

• Letters of Credit issued by importer's bank
• Credit terms and currency of payment may be negotiated
• Credit may be confirmed by a bank in the exporter's country
• Known payment date and revenue
• Letters of Credit can provide for payment at sight or tenor (deferred payment, say 30, 60, 90 or more)
• Customer instructs own bank to issue Letter of Credit and also to specify terms
• Credit terms, price and currency of payment may be negotiable