Using Letter of Credit (L/C) is an accepted international payment method but it can be time consuming and costly for both buyers and sellers if you don’t understand how to control them. Basically a letter of credit is a guarantee of payment issued by a bank; the opening bank grants credit to a buyer and issues the guarantee to pay the seller as long as shipping documents are presented to the bank in the correct format, on time and without any mistakes. Letters of credit are governed by the ICC Uniform Customs & Practice (UCP600) but this does not prevent banks from rejecting L/C presentations for discrepancies. In fact, it has been estimated that 45% of documents presented to a bank under letter of credit transactions are rejected on first presentation.
S&H LLP training gives a practical look at the UCP600 rules, the new International Standard Business Practice (ISBP) rules as well as defining key terminology such as – confirmed letter of credit, unconfirmed, irrevocable LoC, advising bank, negotiation. This workshop offers invaluable advice on issuing a letter of credit and handling key L/C documents and practical help in formulating a procedure that leads to payment first-time, every-time. Ideal for anyone exporting to the UK or selling to overseas markets, our training on letters of credit is available for newcomers or people requiring a more advanced look at this finance system.
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