Letters of Credit are used in international transactions by sellers and buyers to ensure payment. With the nature of international dealings including factors such as distance, different country laws and difficulty in knowing your counterparty, the use of Letters of Credit have become functional and advantageous. With skill and acumen in the field of trade finance, Mercantile Bank can act on your behalf and ensure that your suppliers are only paid once confirmation of goods being shipped has been received.
Key Features and Benefits
- Certainty: Put your mind at ease with Letters of Credit when you are unsure of a trade partner’s ability to do what was agreed
- Quality control: Ensure the quality of goods shipped to you by specifying the need for certain documents, such as inspection certificates
- Settlement risk: Reduce your risk of unsettled business and payments with new and unknown trade parties
- Certainty: Rest assured of payment or receipt of goods by using Letters of Credit and manage your trade and business risks more effectively
- Trade with confidence: Benefit from secure trade and limited your import/export risk while growing your business.