International Letters of Credit Services – Types & Procedure

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Letters of Credit Services For Global Traders

A letter of credit is a promise by a bank on behalf of the buyer (customer/importer) to pay the seller (beneficiary/exporter) a specified sum in the agreed currency, provided that the seller submits the required documents by a predetermined deadline. The threat of the associated global risk factors while dealing in international transactions has made the worldwide importers and exporters using letters of credit services.

Also known as a payment guarantee letter, a letter of credit is one of the widely used legal trade finance instruments that has a vital role in building relationships and executing successful international transactions. 

Advantages of our Letter of Credit services:

  • For the seller: The security that the supply of goods will be paid. 
  • For the buyer: The security that payment will be effected only against delivery of the agreed documents.

We at Axios Credit Bank take the hassle out of all your letters of credit requirements and provide you safe, reliable, and suitable documentary credit services as per your business requirements. From defining terms to the settlement of payments, our team of experienced financial advisors make sure on-time payment to the exporters. For an organized, and a comprehensive letter of credit services, you can trust us. We will not only guide global traders throughout the procedure but also make sure that the exporters get paid on-time. Contact us now!!!

How To Apply For A Letter Of Credit At Axios?

We issue a letter of credit on the request of our client i.e importers who are willing to assure timely payments to their exporters up to a pre-described amount within a specified period. Now you can save your time and accelerate payment with reduced risks by using our customized bank credit letter services. Here is the procedure that you have to follow to apply for bank credit letter at Axios:

  • First of all, we come into the picture when both the buyer and seller make the documentary credit agreement after getting agreed on the terms of payment, means of transport, credit period and date of shipment, etc.

  • When the buyer approaches Axios Credit Bank to issue a bank credit letter in the favor of the seller, we conduct a thorough check on the buyer’s credibility. 

  • If we are satisfied, we issue a payment guarantee letter and send it to the advising bank to get it verified. If the advising bank provides its acknowledgment, it is further then forwarded to the seller.

  • Now the terms & conditions of the payment guarantee letter get its authenticity on the seller’s hand.

  • If the seller finds out everything is correct in the LC agreement, he prepares the shipment of goods and submits the documents to the advising bank. 

  • Then the advising bank carefully checks the documents against the LC and they are fine, it releases payment to the seller and delivers documents to us. 

  • After checking the authenticity of the documents, we repay the seller’s bank, debit the buyer, and deliver documents to the buyer so that he could get the goods.

Our letter of credit services is specially customized and designed to cater to the needs of global traders who are lacking sufficient resources to import the goods or need to provide a payment guarantee to their overseas suppliers. Our documentary credit services provide you:

  • Reduced associated risks 
  • On-time and secure delivery of ordered goods
  • Ensure timely and complete payment 

Axios Credit Bank Can:

  • Help you eliminate the associated risks which a global trader faces while dealing in international transactions.

  • Ensure that the exporters will not get penalized by charges imposed for minor documentation mistakes.

  • Guide you through the verification of documentation to check its compliance with terms of the credit, presenting the invoices as well as cooperate with the exporters throughout the process.

  • Submit documents to the advising bank and ensure that the payment is made to the exporters.

Our clients range from small traders to large corporations. We cater to their different documentation needs with our expertise and accumulated knowledge through the years. Contact us for tailored bank credit letter services and satisfy your exporters worldwide. 

Contact Us
Call us now: +65 3158 1809 Or
Click here to apply for our Bank Guarantee / Standby Letters of Credit