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Import Letters of Credit

Import Letters of Credit actually help both importers and exporters by providing greater control over transactions. Companies that are sourcing products from overseas by letter of credit need a financial institution to issue the letter of credit (L/C), which is an extension of credit on your behalf. This is a legally binding document that minimizes financial risks to your business.

When GBC International Bank issues the L/C; we guarantee payment to the overseas supplier as long as they comply with the terms of the L/C. This allows you to sustain and support your overseas suppliers, which is a vital component of your company's financial development. You specify what documentary conditions must be met in the L/C contract before GBC IB is authorized to make payment to your seller. Usually, these include proof of shipment with latest shipping date and description of merchandise.

There are two types of L/Cs: "Sight" and "Time." The key difference between the two is: With L/C - Sight, payment is made upon receipt of documents. With L/C - Time, payment does not have to be made until you actually have the merchandise in hand. GBC can customize your L/C to meet your specific needs, ensuring that the transaction goes smoothly from letter of intent to receipt of goods promised.

 

 

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

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

 

 

 

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