Success through invoice factoringLetters of Credit

 

 

 

 

 

Call us to find out more!

CALL NOW - 877.531.2369 or 417.437.3949

 

Diversified Resources, Factoring Service, Joplin, MO

 

 

 

Home Up

Receivable Finance
Healthcare Factoring
Construction Factoring
Purchase Order Finance
Debt Management
Letters of Credit
Consumer Finance
Credit Card Processing

Connect

 

 Please add a like...

 

 

 

 

What are Letters of Credit?


A letter of credit is a payment guarantee given by a bank - (the issuing bank)
on behalf of a buyer - (the applicant) to pay a seller - (the beneficiary)
an explicit amount of money on presentation of specified documents representing
the supply of goods as defined and within the specific time limit stated on the Letter of Credit.



The issuing banks role is two-fold; Letters of Credit


The first role is to guarantee to the seller that the bank will pay the seller the amount due if all Compliant Documents*  are presented. This offers security to the seller -

*(the exact documents specified by the Letter of Credit)

 

                The bank is saying  to your supplier... "We guarantee that you will be paid if you present documents (XYZ)"

 


Secondly is protecting the buyer's interests by examining the documents, and only paying if these documents comply with the terms and conditions set out in the Letter of Credit.

Where the bank says... "We will  pay your supplier on your behalf only if they present documents (XYZ)"


Note that the Letter of Credit refers to documents representing the goods - Not the goods themselves. Banks are not in the business of examining goods on behalf of their customers.


Typically the documents requested will include
* Commercial Invoice
* Transport Document such as a Bill of Lading or Airway Bill,
* Insurance Document
* Inspection Certificate

     See if you qualify...

[Home] [Services] [Giving Back] [News & Information] [Contact Us] [Partnering] [Search] [Financial Tools] [Factoring Volumes] [Business Links] [Business Resources]

Phone: 1.877.531.2369  Missouri Local 1.417.437.3949 Arkansas Local 1.479.696.6254 Oklahoma Local 1.918.919.8449

Find us on Lender Finder

 

Contact Form
Copyright 1998-2015 DIVERSIFIED RESOURCE$ PO Box 3232 Joplin MO 64803-3232 | PO Box 3232 Bentonville AR 72712-3232
Last modified: 06/08/15