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

Letter of Credit – How an International Bank Can Help with This

Image
At the time of conducting international business transactions, trade financing solutions such as Letter of Credit assure great security and success. And of course, the trusted international banks will help you to make the most of this trade financing procedure. The following passages of this post will help you to learn more about Letters of Credit.    What is a letter of credit? A letter of credit is a document from a bank assuring that the payment of a buyer to a seller will be received on time and at the right amount. In certain cases, when the buyer is unable to make payment for the purchase, the bank will cover the full amount of the purchase. This trade financing solution plays a very crucial role in fixing the international dealings that are likely to entail relevant drawbacks such as distance, different laws, incapability of knowing the business parties, etc. How does LC this work? A letter of credit is basically a negotiable instrument and hence, the issuing bank pays the
Read more

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

Learn about bank Guarantee in Singapore with examples

Image
Imagine you have a garment company in Singapore.  If your company does frequent transaction, then you can take help from your bank by using bank guarantee service. In today’s article, we will talk about bank guarantees and its benefits with examples. Let’s start it. Definition of Bank Guarantee   You may know that Bank Guarantee is an agreement between three parties (the bank, applicant, and beneficiary). Applicant is the party who look for the bank guarantee from the bank and the beneficiary is the one to who receive the guarantee. Types of Bank Guarantee   There are many types of a bank guarantees. Such as Financial Guarantee, Performance Guarantee, Advance Payment Guarantee, Loan Guarantee, and Bid Bond Guarantee. Example   Suppose company ABC is a small, almost unfamiliar garment company that would like to purchase huge material. The manufacturer dealer may demand Party ABC to prepare a bank guarantee in order to feel more confident that it will make cash for the goods it ex
Read more