Best Letter Of Credit Services
A letter of credit is a payment mechanism utilized in global trade to give an exporter economic assurance from a reputable bank. In case the purchaser and seller are unknown to each other in global trade transactions, a letter of credit decreases the hazard. Your corporation can just make the payment for goods after the suppliers give evidence that they have been shipped utilizing a letter of credit.
A letter of credit is an agreement in which a bank agrees to give a remarkable amount of funds at a particular duration when the applicant approaches it. The finance would be given in a similar name to the goods seller who is otherwise identified as the inheritor. This financial help is protected in the documents which describe goods standing shipped or prepared for the shipment. Letter of credit is very crucial in trade in the UAE as the country has business marketing throughout the world.
A letter of credit is deemed as a savior to decrease hazards in trade by moving the responsibility to make the payment from the purchaser to the bank which works as a payment assurance in the transaction in return for the presentation of needed documents as specified in the letter of credit. Simply, a letter of credit can be deemed as a paper granted by the bank that assures the purchasers’ payment to the seller, when the purchase is not able to pay the amount to the seller.
The bank of the exporter examines and sanctions the letter of credit and sent to the exporter. Then, the exporter sends the goods in the way given in the letter of credit and presents the necessary documents to their bank. The bank of exporter examines the papers for adherence to the letter of credit terms. Once sanctioned, the bank of the exporter presents the adherence papers to the bank of the importer. The bank of the importer frees the amount to the bank of the exporter.
Why Chooose Us?
Better Way Finance Has extreme experience in assisting and issuing a letter of credit from the UAE’s bank and other financial units. . Our specialists are highly proficient in giving a letter of credit consultancy and can customize this versatile financial tool that is suitable for your corporation’s recent funding requirements.
We assist in sustaining acquisition plans and improving cash flow by freeing up corporation funds which may otherwise be locked up as deposits – which supports the number of financial commitments and contracts.
We at Better Way Finance give an array of services in UAE and are also helpful to save your valuable time. If you are in search of getting a letter of credit for your international transaction then do contact us to make the procedure very easy, seamless, and hassle-free. We will manage all the stress regarding the same.