Letters of Credit

Get your vital payment documentation right first time with the NECC Letter of Credit Management Service and avoid potential problems such as bad debts and payment delays, faced by 80 per cent of companies.

Concentrate on other aspects of your business safe in the knowledge that experts are preparing your documentation and securing timely payment for your goods and services.

What is a Letter of Credit?

A Letter of Credit is frequently used as the agreed method of payment for international trade. It conditionally guarantees payment to the exporter (seller) provided that the documentation submitted complies with all conditions specified.

However, national statistics show that up to 80 per cent of documents presented for payment under Letters of Credit are rejected by banks on first presentation and over 50 per cent on second presentation due to avoidable discrepancies in the documents. This includes errors such as: Letter of Credit number omitted; specific declarations missing; incorrect shipping terms; inconsistent documents - the list is endless!

What is the NECC Letter of Credit Management Service?

It is a customised service to ensure your Letter of Credit documentation meets all requirements first time. The service includes:

• Checking the Letter of Credit and suggesting amendments
• Preparation and collation of all documentation
• Arranging shipment if required
• Liaising with freight forwarders
• Arranging certification and legalisation
• Presentation of shipping documents to the bank for payment

The NECC Letter of Credit Management Service will help you:

• Effect positive cash flow
• Save money and time
• Secure timely payment for exported goods
• Avoid bad debts
• Enhance your efficiency and reliability
• Increase your profitability
• Create the confidence to request payment by Letter of Credit

International Trade Advisors are on hand to provide any help or guidance you may need either by telephone or by appointment. To contact us please call 0300 303 6322