LETTERS OF CREDIT
A large part of international trade is settled on the basis of letters of credit. A letter of credit involves the buyer’s and seller’s banks, and the idea is that the parties can exchange documents for money via the banks without assuming risk exposure towards each other.
Although letters of credit are subject to an international set of rules, there is a myriad of possibilities for how to draft the detailed terms of the individual letter of credit. If you are not razor sharp on having the letter of credit drafted in an acceptable format, you risk that it ends up being worthless and not represent the security you expected.
There are many pitfalls, and even though you can get good advice at the bank, it is our recommendation that you make sure to have your own competencies available as well.
We can ensure that letters of credit do actually give you the security you expect, and we can support the entire process from A to Z. We can also handle your entire portfolio, including negotiations with the banks and dialogue with buyers and sellers, etc. This allows you to focus on logistics and other matters concerning order processing.