Letter of Credit

A Letter of Credit (LC) is a binding document that a buyer can request from their bank in order to guarantee that the payment for goods will be transferred to the seller. It provides the seller with the reassurance that he or she will receive money for the goods sent. LC provide exporters with piece of mind when dealing with an unfamiliar country or customer and reduce risk with any political instability. Due to the unfamiliarity and discrepancies in LC, the rejection rates of these documents is estimated to be between 50-60%.

Banks charge additional fees for any amendment to an approved Letter of Credit, regardless of how minor it is. Amendments and rejections may range from altering a letter in a name, to changing the delivery date or amount payable. This emphasises the importance of recording all purchase order details correctly on the initial application. Each amendment slows the process, and this can result in higher financing costs - This can often be the difference between exporters making a profit or loss.

TridentGLOBAL software eliminates Documentary Credit rejections. The software ensures that all relevant information from financial institutions and supporting documents flows through to the Letter of Credit. The exporter will not incur additional bank fees or higher financing costs for any amendments made.

The TridentGLOBAL software minimises the time for exporters to get paid and maximises the payment amount by simplifying the whole process.

The Trident solution is capable of interfacing with each of the banks below for your Letter of Credit.