Beginner's Guide to Exporting. 4th Edition.

2 5 Beginner’s Guide To Exporting Facility What can Letter of Credit-i (LC-i) do? When to use Letter of Credit-i (LC-i)? Letter of Credit-i (LC-i) Benefit: You can have better negotiation with counterparty because the credit enhancement as you have the promise to pay from the bank. • A written promise from your bank to the counterparty to pay amount of money at stipulated date with requirement need to comply with the LC-i terms. • When you are importing goods from another country as this letter of credit will convince the seller on your payment method. Where can I apply for Letter of Credit-i (LC-i)? Facility What can Standby Letter of Credit-i do? When to use Standby Letter of Credit-i? Standby Letter of Credit-i Benefit: You can have better negotiation as there is a promise from the bank to pay the purchasing amount. • A written promise by the bank to the seller upon request of the buyer to pay the purchasing amount at stipulated date or to cover the trade amount if any default happen on the buyer side. • When you buy goods from another country, you can ask your bank to issue this to the counterparty as it will provide the certainty to the seller regards to your payment method. Where can I apply for Standby Letter of Credit-i? SOURCING FOR EXPORT FINANCING CHAPTER 5