zero discrepancy presentations
“Learn,
to love Letters of credit!”
letter of CREDIT training workshops
what do we know?
letter of credit compliance.
Seasoned Exporters know that Compliance is a major concern in every aspect. In the critical area of getting paid, when the mechanism is a Documentary Letter of Credit, compliance is the only way to be ensured of a timely and cost efficient transaction.
A Letter of Credit is not necessarily a guarantee of payment. While when used effectively, it can prove to be faster than a payment even on open terms, but for this to happen, the Exporter must be very knowledgeable of the rules, guidelines and Logistics issues that could become obstacles for payment. The key is to have a reliable safety net of experts to guide them to payment.
Frankly, initially establishing how the LC is written is critical to the entire operation. While the Exporter may choose to outsource the actual Letter of Credit Document Preparation, that skill is essential - second only to their understanding of the governing INCOTERMS and how it should affect the Letter of Credit, what Documents and restrictions should be required, and which should not.
Statistics show that on as many as 85% of all Letter of Credit transactions, the Seller’s LC Documents will be rejected by the banks at first presentation.
These rejections or refusal of LC Documents are due to non-compliance of the Letter of Credit’s stipulations and/or their failure to comply with the UCP600. These Discrepancies cause a delay or at worst can even lead to non-payment.
At times, even from the moment the Letter of Credit is written, the LC may have inherent flaws whereby the Exporter may not be able to comply regardless of their good intentions.
When a Discrepancy cannot be corrected within a specific time, even if a Letter of Credit is ‘Confirmed’, ultimately the Buyer and his bank are the ones who can together approve the discrepant Document (s) and authorize if /and when the Seller gets paid.
We know how to get Exporters paid. We ARE consistently among the top 15% that get it right the first time. We can do it for you or teach you how.
We achieve results through our discerning attention to Documentary Letter of Credit compliance and our overall knowledge of Transportation Logistics and how it will affect the transaction.
Our formula for success is a keen attention to detail and our innate ability to foresee potential problems before they happen.