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Letter of Credit
Services by Naayatrade
Welcome to Naayatrade's Letter of Credit (LC) Services, where we facilitate secure and seamless transactions for international trade. Our LC services provide a reliable framework for buyers and sellers to engage in trade while minimizing risks and ensuring payment security.
Understanding Letter of Credit
A Letter of Credit (LC) is a secure document issued by a bank on behalf of a buyer, guaranteeing payment to the seller for goods or services, subject to specific conditions being met. It acts as a commitment by the bank to cover the payment if the buyer fails to do so. This mechanism is particularly useful in scenarios where obtaining reliable credit information about a foreign buyer is challenging.
Parties Involved
- Applicant: The importer who requests the bank to issue the LC.
- Issuing Bank: The importer's bank that issues the LC.
- Beneficiary: The exporter who will receive payment under the LC.
Benefits of Letter of Credit
Provides assurance to sellers that they will be paid, even if the buyer defaults or changes/cancel the order.
Facilitates international trade by mitigating risks associated with cross-border transactions and different legal regulations.
 Offers flexibility in terms of payment recipients (seller or seller's bank) and transferability to third parties.
Types of Letter of Credit
Import/Export Letter of Credit
Used for trade between importers and exporters.
Transferable LC
Allows transfer of funds to intermediaries or actual suppliers.
Revocable LC
Can be revoked by the buyer or buyer's bank without notice.
Irrevocable LC
Changes require approval from the beneficiary.
Untransferable LC
 Prevents transfer to a different beneficiary.
Standby LC
Ensures payment in case of unexpected events.
Confirmed LC
 Guarantees payment by an advising bank in addition to the issuing bank.
Commercial LC
Standard LC used for commercial transactions.
Red Clause LC
 Allows partial payment before goods are shipped.
Green Clause LC
 Provides cash to the supplier upon proof of warehousing.
Why Choose Naayatrade for Letter of Credit Services?
We collaborate with reputable banks to ensure the credibility and reliability of our LC services.
Our team provides expert guidance and assistance throughout the LC process, from issuance to payment.
We offer competitive rates and transparent pricing for our LC services.
Our dedicated support team is available to address any queries or concerns related to LC transactions.