International Letters of Credit Services – Types & Procedure

Building Up A Strong Global Supplier Base With Axios’s Letter Of Credit

We know that expanding a business overseas goes through satisfied suppliers in terms of payment. And if you are operating in import-export activities globally, a Letter of Credit is a significant tool to provide payment assurance to foreign exporters. 

Since these LCs are backed by our legal guarantee, exporters get peace of mind & you initiate the easy purchase of goods from international markets. 

A Glimpse Of Letter Of Credit

A letter of credit, also known as a payment guarantee letter or a bank credit letter, is an important trade finance tool issued by a bank or FI to support an international import-export transaction. 

Whenever an exporter demands a payment surety in an international business deal, our letter of credit services helps them on behalf of our clients to remove the risk of payment default, improve cash flow, and execute overseas transactions without any threat or payment fraud.

What Axios Credit Bank Ltd Offers?

After operating in the finance industry for significant years, we have gained productive experience in managing, consulting, and issuing suitable, business-oriented, customized & accurate LC services to foreign sellers on behalf of our clients. 

Our group of financial advisors is skilled & proficient in keenly understanding customers’ requirements and conducting thorough research on providing precise & appropriate LC services. Tell us your versatile financial needs and get a tailored finance solution at fair rates. 

Our range of bank credit letter services includes:

• Deferred Payment
• Transferable Letter of Credit (LC)
• Revolving LC
• Red Clause LC
• Confirmed & Unconfirmed 
• Revocable & Irrevocable
• Time Credit/Acceptance Credit
• Standby Letter Of Credit
• Commercial Letter of Credit 
• Back to Back LC
• Traveler's Letter of Credit
• Green Clause LC

We believe that using the letter of credit services is a need of the hour not only to explore new business opportunities overseas but also to stay ahead in the global trade competition. Availing of LC payments is a great way to establish creditworthiness among foreign suppliers as eventually, they are going to get paid, irrespective of any situation. 

Our attention to detail and capabilities in handling complex LC transactions have made us a popular & reliable choice among global traders. We give assurance of an easier & quicker payment in an overseas deal. 

What We Cover Under Our LC Services?

• Ensuring the authenticity and legitimacy of T&C of payment guarantee letters before issuing them, eliminating the need for any amendments later.
  
  
• Sound discussion on Incoterms and evidential documentation
  
  
• Reviewing Bill of Lading (Shipping Receipt) to further determine if the terms have been fulfilled following the import order.
  
  
• Preparing and issuing suitable LOC documents as required under pre-described T&C.
  
  
• Collaborating with involved third parties in the process such as (freight forwarders, carriers, insurance providers, etc.) to communicate the issuance.
  
  
• Seeking approval from both parties.
  
  
• Collect non-negotiable copies of documents and forward shipping documents to exporters on your behalf.
  
  
• Presenting evidential documents to the appropriate bank.
  
  
• Following up with the confirming bank for further procedure of documents and payment.

How To Apply For Our Services?

Now you can save your time and accelerate payment with reduced risks by using our customized LC services. Here are some steps that you have to follow to apply for LC at Axios:

• First, the buyer/importer is required to present the documents containing details concerning trade deals with exporters, such as terms of payment, means of transport, credit period and date of shipment, etc.
  
  
• Request an LOC with us and we will conduct a thorough check on the client’s credibility and income sources
  
  
• Once we get satisfied, we issue LC and send it to the advising bank to get it verified. If the advising bank provides its acknowledgment, it is further then forwarded to the seller.
  
  
• Now the terms & conditions of the LOC get their authenticity on the seller’s hand.
  
  
• If the seller finds out everything is correct in the LC agreement, he prepares & submits the shipment documents to the advising bank. 
  
  
• Then the advising bank reviews the documents against the LOC and they are legitimate, payment is released to the seller, and documents get delivered to us. 
  
  
• After ensuring the authenticity of the documents, we repay the seller’s bank, debit the buyer, and deliver the documents to the buyer so that he could get the goods.

How Much Does Our LOC Services Cost?

It would be better to approach us directly using our website and get in touch with us to discuss your specific needs. Each transaction is unique and thereby we consider various factors to decide the best type of bank credit letter services to serve you. For example, origin, destination, delivery timescale, etc. There aren’t any hidden/extra costs to pay for our services. 

Axios Credit Bank’s finance specialists will ensure that your export documentation is issued & authorized quickly & fluently. Our  Letter of credit services ease payment settlement and compel genuine trade transactions between the parties. 

Benefits Of Our Letter Of Credit Services

• Optimized cash flow
• Increased liquidity 
• New trade market opportunities
• Mitigated payment risks 
• Faster payments 
• Reduced bank costs
• Improved profits etc.

Leave Us A Query Now!!

To get in touch with us, you can use our Contact Form online and get a suitable solution to all your LC needs. Click on the given link below. We instantly respond to every query and help our client’s business grow in an international scenario.