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Letter of Credit

If you are unable to find reliable credit information about your foreign buyer, there is a trade finance tool available that provides a high level certainty of payment to exporters called the Letter of Credit. A Letter of Credit is a contractual commitment by the foreign buyer's bank to pay once the exporter ships the goods and presents the required documents to the exporter's bank as proof. By Using a Letter of Credit, the exporter gets a guarantee of payment, while offering the importer reasonable payment terms. As a trade finance tool, Letters of Credit are designed to protect both exporters and importers. They can help you win business with new clients in foreign markets. For more: https://www.trade.gov/letter-credit December 11, 2020