Commercial Letter of Credit – Import
Per the importer’s application, the L/C is a payment undertaken by Bank of China to the exporter. Bank of China will fulfill its payment obligation when the terms stipulated in the L/C are complied with.
L/C issuance has the benefit of upgrading the credit of the importer to the credit of the issuing bank, which helps increase the trust of the exporter during the international trade.
Features & Benefits
Facilitate the trade process
opening an L/C provides the exporter with a conditional payment commitment on top of the commercial credit, giving importer better credit and facilitate the trade process.
The cargo title documents, shipping date and quality of cargoes are well controlled under the documents and terms of the L/C.
Optimizes the cash flow from operating activities
The importer could utilize the credit limit to issue the L/C and minimize the fund occupation during the operating activities.