The significant details you should know about the Letter of Credit

A letter of credit is undoubtedly an important tool in international trade. It provides an assurance to the exporter of receiving payments. Nowadays, many business owners in the UK are showing interest in the letter of credit. If you are involved in international business, you are also advised to take the same route.

You should contact a renowned investment bank regarding the Letter of Credit in the UK. Here you will get the perfect guidance. But prior to contact, take a look at the adjoined passage to know about this financial instrument.



What is the Letter of Credit?
A Letter of Credit is a document issued by a bank that guarantees the buyer’s payment to the seller within the deadline with the right amount. If the importer is unable to make a payment on the purchase, the bank will take responsibility on behalf of the importer. The Letter of Credit is issued against a pledge of security or cash. And the banks charge the fee depending on the particular percentage of the amount of Letter of Credit.

There are several reasons why the business owners in London are leaning towards Letter of Credit in the UK. Go through the following passage to know about it.

Advantages of Letter of Credit
Take a glance at the below-mentioned points.

Advantages for the exporters
  • If the exporters take the help of a Letter of Credit, the risk of receiving payment would be reduced. This instrument can provide an assurance of payment to the exporters.
  • With the aid of a Letter of Credit, the exporter is able to calculate the payment date for the goods. That’s why the exporters in Cardiff rely on this financial instrument.
  • The importers will not be able to refuse to pay because of a complaint about the shipped goods.
Advantages for the importers
  • With the help of a Letter of Credit, the importer can control the time period of shipping goods. Hence, the importers in Glasgow are showing interest in this tool.
  • The Letter of Credit provides an assurance to the importers of receiving goods within the deadline.
  • This financial instrument allows the importer to avoid or reduce prepayment.
A trusted investment bank to contact
You can approach OXFORD Investment Bank Group - Bangkok, Thailand regarding Letter of Credit in the UK. They help their customers in every import and export process. Not only that; they also offer other customized financing solutions worldwide such as France, Thailand, South Korea and so many.Visit oxfordinvestbank.com to know more in this respect.


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