By covering your risks and maximising security in payments, we provide a safe and secure environment allowing your business to grow to its potential.
Complying with the terms and conditions of the letter of credit ensures payment. Having the letter of credit confirmed by us gives you the additional security of covering political risk of the buyer's country as well as the economic risk (if any) of the overseas bank.
The benefits of the export letter of credit:
- Improve cashflow management - Since you receive guaranteed funds, we will simply 'discount' or 'negotiate' your bills of exchange to improve your cashflow.
- Extend payment terms - Your suppliers may agree to extend payment terms if you assign the proceeds of the letter of credit to them. This will also improve your cashflow.
- Hedge currency exposures - Knowing the payment date, amount and currency in which the payment is to be made allows you to predict your cashflow more accurately. We can help you cover such currency exposures.
- Save insurance costs - Reduced risk of payment default reduces need for separate credit insurance and by simply confirming your letter of credit, we can also reduce the need for political insurance.
