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Does a Letter of Credit
Guarantee payment? The
key to remember is that the LC is NOT a Guarantee
of payment. Payment is subject to
compliance. The Letter of Credit is a method to
facilitate payment, but in the case of
non-compliance, the buyer will be in control of
authorizing.
Statistics show that in as many as 65% of
all Letter of Credit transactions, the
seller's documents will be rejected by the banks
at presentation. These rejections are due to
faulty documents. Whether the discrepancy is
a result of poor executed documentation or not
meeting any of the LC stipulations, it is common
for the ultimate approval of the documents to be
in the buyers control.
In other cases, from the moment they are written they may have inherent
flaws whereby you may not be able to comply
regardless of your good intentions.
Our
ZERO Discrepancy Guarantee....
It is our
company policy to
always aim for error-free documentation - ZERO
Tolerance - and we have developed strategies to
eliminate all errors before presenting letters
of credit for payment.
We are so confident of our performance that
our promise to you is that we will not have any
discrepancy in the documents that we prepare on
your behalf.
We stand by our word
and if human error got the better of us on that
day, we will correct the error as possible and
PAY for the bank discrepancy fees ourselves.
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