Are you nervous about a newly established international business relationship? Are you entering into an unfamiliar global market? Do you need to ensure that you receive payments on time?
Our international trade services offer you various products to help ease your new business relationship, mitigate the uncertainty and facilitate a smooth transaction.
Letters of Credit
Letters of Credit (LC) are one of the most secure forms of settlement for international payments. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the beneficiary (exporter) provided that LC terms and conditions have been met, as verified through the presentation of all required documents.
A Documentary Collection is a transaction whereby the exporter entrusts the collection of payment to the remitting bank (exporter’s bank), which sends documents to a collecting bank (importer’s bank), along with instructions for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents. Documentary Collections involve the use of a draft that requires the importer to pay the face amount either at sight (Document Against Payment—D/P) or on a specified date in the future (Document Against Acceptance—D/A).
A Direct Collection is a transaction whereby the exporter send the collection documents, accompanied by their bank’s printed form and/or cover letter, directly to the importer’s bank for payment. It carries the same power as Documentary Collections but with improved turnaround time and lower cost. Similar to a Documentary Collection, Direct Collections may involve the use of a draft that requires the importer to pay the face amount either on sight (Document Against Payment—D/P) or on a specified future date (document against acceptance—D/A).
Standby Letter of Credit
Standby Letters of Credit (SBLC) serve as a guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client/applicant fail to fulfill a contractual commitment with a third party/beneficiary.