Accutrac Capital Solutions understands that security in ordering and receiving a product is important. In order to guarantee a shipment will be sent from your suppliers, many companies opt for using a Letter of Credit.
A letter of credit is a form of payment used instead cash transfers. Although there are many areas a Letter of Credits is used the usual venue is in overseas importing. A letter of credit it is a way to guarantee the shipment of product from a supplier that is not readily available in this market or are subject to the same import/export laws as in Canada.
What Types of Letter of Credits are Available
Accutrac Capital Solutions will work with you and customize the product to suit your situation. There are different types of Letter of Credits available through Accutrac Capital Solutions which will allow you to feel secure in your transaction.
SIGHT OR TERM
This Letter of credit allows your supplier to receive their funds immediately upon presenting specified documents that are set out in the contract between the your company and the supplier. These documents can consist of an invoice along with a Bill of Lading and exporting documents showing shipment. It also allows you to set a term before your supplier can receive the funds such as 30 day term after shipment is sent. In this way you can gaurantee yourself that products are received in good order prior to the supplier receiving funds.
REVOCABLE
A revocable Letters of credit can be canceled or changed at any time by the issuer without notice. This does not include any deposits or draws agreed upon prior to canceling a letter of credit. These must be honoured by the issuer.
IRREVOCABLE
An irrevocable letter of credit cannot be canceled unless written consent from the seller is received.
To learn more on how Accutrac Capital Solutions Letter of Credit works press the button below and one of our Knowledgeable staff will be happy to talk to you.
