What Are The Advantages Of A Commercial Letter Of Credit In Singapore?

A letter of credit and documentary credits are the same. It is a letter of guarantee from a bank that a seller will receive the buyer's payment on time and in the right amount. Yes, it is the advance mode of payment for any business transaction is Commercial Letter of Credit (LC), as buyer’s bank guarantees payment to seller through seller’s bank on demonstration of required documents as per LC. The geographical distance between importer and exporter is very far; hence commercial letter of credit in Singapore can save your transaction and help you to enhance your business. A commercial letter of credit offers direct payment from the bank to the beneficiaries receiving payments. So, carry on reading the upcoming passage to learn more about its advantage in the global business.


Advantage Of A Commercial Letter Of Credit In Singapore

A letter of credit enjoys various advantages in international trade. Go through the below mention points to learn more.

  • The major advantage of Commercial Letter of credit to a supplier is diminishing of credit risk.A commercial letter of credit helps to get finance for the production of goods meeting working capital requirements.
  • It adds flexibility in different terms and conditions.
  • By availing a commercial letter of credit, the client feels that he/she will receive the stocks that he/she is paying for and the seller is sure that he/she will receive the payment against his/her stock.
  • This letter enhances the business globally, because a commercial letter of credit is created on behalf of the customer and provides the specific bank than the one releasing credit to make a payment to the recipient.
  • It gives permits the buyer to avoid or reduce pre-payment.
  • Here, a buyer can control the time period for shipping of the goods;
  • It provides the agent about the payment risk of a buyer and then generates faith and relationship. For an importer, he/she should be able to satisfy the issuing bank about his capability which makes the bank issue the credit to the seller.

However, want to access this service? Then don’t waste your time. Contact a reliable bank and boost your business with trust.

Make contact with OXFORD Investment Bank Group - Bangkok, Thailand for commercial letter of credit in Singapore. They manage transactions where it facilitates in areas which require for applying appropriate Financial Instruments such as - Standby Letters of Credit (SBLCs), Bank Guarantees (BG's), Letters of Credit (LCs), Proofs of Fund (POFs), Performance Guarantees (PGs), Documentary Collections (DCs). Visit here - oxfordinvestbank.com to learn more.

Comments

Post a Comment

Popular posts from this blog

Enjoy the growth of your business with the help of financial guarantees

Image
Financial guarantees are an agreement by a third party to back the liability of a second party for its payment to the ultimate investor. But, here is a twist, a financial guarantee does not always cover the whole amount of debt. It might guarantee to back only the principal or the interest but not both. If you are a business owner and, you are going through a bad financial condition, you can take the help of this kind of service provider. In Thailand, you will get a lot of companies, but selecting the reliable one is indeed stressful. But, friends, no need to be worried! From this piece of writing, you will get to know the contact information of the right service provider. But, prior to knowing the name, make out some important things about this service. Scroll down to the subsequent passage right now.     Things you need to know about financial guarantee Financial guarantees are helpful to lenders in attracting investors. The investors enjoy peace of mind that the lender will repay
Read more

Brief advantages of Standby Letter of Credit in Thailand

Image
For the growth factor of international dealing, reliability is an important factor. In Thailand for a hazardless business deal, there are many companies to provide support for such deals. In this matter, this third party financial institute other than the buyer and the supplier has a great role. The company gives an assurance about the fulfilment of the payment to support the client through a Standby Letter of Credit in Thailand. Now get to know some information about this guarantee from the below passage. The concept of the Standby Letter of Credit The standby letter of credit is the full form of the term SBLC or SLOC. This is a legal document that issues a bank or financial institute. It is a guarantee about the payment of the exporter. That’s why standby letter of credit worth for any seller for international trading and it is the reason for the popularity of this guarantee in Thailand. To know the helpfulness of this guarantee, keep reading upcoming paragraphs. Advantages of
Read more

Performance Standby in Thailand | Definition with Easy Examples

Image
Before we discuss performance standby in Thailand, we need to talk about the Standby letter of credit. In today's article, we will discuss both topics with examples.  To learn more about it, read this article to the end. A standby letter of credit: A Brief note with an example Well, SLOC is an arrangement in which a bank guarantees payment to a "beneficiary" if something fails to happen. For example, A vendor sells her textiles to an external client who commits to pay within 40 or 60 days. If the amount never arrives, and the exporter required the buyer to use a standby letter of credit, the seller can collect cash from the importer’s bank. Before releasing the letter of credit, the bank often checks the importer’s credit and decides that the importer will pay back the bank. But if the customer’s credit is in dispute, banks may require funds on deposit for a green signal. Performance Standby in Thailand: A Brief Note with an example Performance SLOC ensures statutory
Read more