Letters of Credit
Letters of Credit enable businesses to offer secure payment terms to suppliers while ensuring the prompt delivery of the goods and services.
Regular LC limits can be established by the bank after normal credit appraisal, risk assessment and security analysis. Due consideration has to be taken of the nature of the goods being imported, country risk and exporterâ€™s credit report amongst others.
All goods under any LC must be consigned to the bank for the account of the customer (usual terminology bank / notify x, the customer).