Letter Of Credit Consulting

Letter Of Credit Consulting

Payment Methods in Foreign Trade

We can cite 6 different payment methods in foreign trade :
1) Payment in advance (Cash Advance)
2) Mal Muqabili Payment (Cash Against Goods)
3) Vesaik Muqabili Payment (Cash Against Documents)
4) Bank Payment Obligation (Bank Payment Obligations)
5) Letter of Credit (Letter of Credit)
6) Accepted Credit Payment (Acceptance Credit)

Letter of Credit varieties

A letter of credit can be defined as a written “conditional undertaking” by a bank, at the importer’s request, to pay the exporter for the goods if the required documents are presented correctly and on time in compliance with the terms of the letter of credit.

Letter of credit, which is an assurance that the payment will be made if the exporter presents the correct documents, is also a guarantee given by the bank, which represents the goods in question and ensures that the correct form of documents are received by the importer, which will enable him to receive these goods from his own customs. In other words, it is a reliable payment method in which banks are a party for both buyers and sellers.

Letter of credit discrepancy combines two terms that one hopes will not occur together. A discrepancy in a letter of credit transaction means that the seller may be unable to receive payment for the goods because the requirements of the letter of credit have not been met.

With the UCP 600 and ISBP 745 regulations of the International Chamber of Commerce (ICC), how letters of credit will work, the rules, the duties, rights and responsibilities of the parties have been determined. Rules are specified in UCP 600, and some details and implementing directives are specified in ISBP 745.

A question often asked recently is: Can a domestic letter of credit be opened? The short answer is yes, a domestic letter of credit can be opened.

The services we provide within the scope of letter of credit consultancy;

A) Information Services

We answer any of your questions throughout your letter of credit processes :

These are;

• If you have not previously used payment by letter of credit, questions seeking general information on this subject,
• Providing support for opening a letter of credit,
• Letter of Credit example Making a verbal comment on
• Examining the confirmed/unconfirmed letter of credit,
• Any questions about an existing letter of credit, where you hesitate or do not understand,
• Understanding, interpreting and facilitating your communication with the bank,
• Any questions about problems in the documents given to the bank.

The following matters are outside the scope of the information services;

• Sophisticated questions that require long answers and comments,
• Questions that require thorough document review,
• Questions that require interviews with institutions such as banks, logistics companies, etc.

B) Letter of Credit Interpretation Services

It covers the process of examining your letter of credit and reporting the deficiencies seen.

Interpretation services include;

• Examining and translating the letter of credit (within the framework of its own special rules), explaining the articles,
• Disclosure of the “required documents” and “conditions required to be fulfilled” for collection,
• Identifying and explaining the risk-bearing conditions and contradictions that will not be fulfilled, and making suggestions for correction requests,
• "Is this credit sound? Should we install?" to be answered.

C) Full Service “Export” Letter of Credit Consultancy

Export Letter of Credit transactions Support in all processes from beginning to end is the subject of this consultancy. The services we provide in this option are;

• Checking the proforma invoice to be prepared after the order is received, making the necessary corrections (if any),
• Reviewing the draft letter of credit that comes from the importer and supporting the correspondence with the importer in order to eliminate the problems,
• Examining the letter of credit received by the bank; Disclosure of “documents required” and “conditions required to be fulfilled” for collection. Identifying unfulfilled or risky conditions, contradictions and (if necessary) preparing a correction request,
• Answers to “Is this letter of credit safe and sound? Should we ship the goods?” type of questions.
• Writing instructions for the documents to be prepared outside of the company, meeting with other organizations that will prepare the documents if necessary,
• Guiding the company through the documents preparation stages and proof reading the prepared documents,
• Supporting in case there is a deferred payment letter of credit is concerned or the liquidation of the letter of credit is concerned,
• Supporting all problems that may arise regarding the letter of credit until the payment is fully made.

D) Full Service “Import” Letter of Credit Consultancy

The subject of this consultancy is to support you in all processes from beginning to end in import letter of credit transactions. The services we provide in this context are as follows;

• Determining the terms of the letter of credit to be opened in accordance with the nature of the import to be made.
• Determining the documents to be requested,
• Preparing the letter of credit instructions for the bank and completing the application form
• Checking the draft letter of credit prepared by the bank,
• This consulting service will be provided by telephone, email and, when necessary, visits to the customer’s office. Discussions with third parties and organizations, when necessary, will take place by telephone and email.
• After the letter of credit is opened, support will be provided only for correction requests from the vendor (if any).
• Matters other than those mentioned above, as well as transactions during the import phase are not covered by this service.

Latest status in Libyan letters of credit

Please consult for our current references and contact information regarding Letter of Credit Consultancy.

Please click for letter of credit training details.

For detailed information, please contact...

Gökhan EROL
e: gerol@inovakademi.com
g: 05337611934
t: 02129396301
f: 02129247002

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