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Export Letters of Credit

Export Letters of Credit ensure that an exporter will receive payment from its overseas customer. This is achieved by the exporter requiring a letter of credit from their customer's bank, which substitutes its credit standing for that of the buyer. This minimizes the risk of non-payment due to political or financial circumstances.

This L/C would name GBCIB as the advising bank, whose function is to authenticate the L/C verifying that L/C and informing you that it has been issued. However, authentication does not mean that the advising bank assumes any obligation for payment. The L/C should be issued in an openly negotiable form to permit GBCIB to process your documents.

Enhanced protection is one more advantage of requesting GBCIB to comfirm the L/C in addition to authentication. In providing confirmation, GBCIB essentially replaces the credit risk of the foreign bank with its own creditworthiness. This means that in the event of a payment default by the issuing bank or the country, GBCIB would make the payment as long as the terms of the L/C were met.

GBCIB's streamlined processing protocols mean more expeditious payment processes and improved cash flow to you. Upon shipment of your product, forward the required paperwork such as bills of lading, insurance certificates, and invoices as specified in the L/C to GBCIB, where they will be reviewed for any inconsistencies. Should any occur, GBCIB help you rectify them, whenever possible, in a timely manner. GBCIB will then forward the appropriate paperwork to the issuing bank and obtain payment for you.

Some L/Cs require time drafts. Once accepted, time drafts represent an unconditional guarantee of payment at a future date by the accepting bank. Should your L/C contain a time draft, we will arrange to get the draft accepted by the receiving bank.

GBCIB's highly effective protocols and solid international expertise will ultimately save you time and money. We have the ability to confirm a wide variety of foreign banks' L/Cs at very affordable rates, even in higher-risk emerging markets.

 

We have branches in California and Washington States to serve your financial needs.

For detail of Export Letters of Credit, please contact our International / Letter of Credit Team.  For forms to apply for Export Letters of Credit, please click here.

 

 

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