Letter of Credit Checking Service

We’re here to help you avoid getting stressed over Letters of Credit.

Our new checking service will help you ensure your documents are right the first time, which will save you time, money, avoid bad debts and most importantly help keep your clients satisfied.

Letter of credit checking service - free trial
This low cost service is fast becoming our most popular, as busy export administrators and managers realise that working with a trusted partner saves them time and therefore money.

Lincolnshire Chamber offers workability checks, pre-presentation checks and a full order handling service. Pre-presentation checks are completed within a guaranteed 24 hours for as little as £99+vat.

Email your next credit and a complete set of documents as requested in the Letter of Credit to Helen.Tomkinson@Lincs-Chamber.co.uk and mark your email FREE TRIAL to try this service, or telephone 01522 846927 for more information.

Prices
We can offer three checking services:

  • Workability checks – member £99+vat | non-members £150+vat
  • Pre-presentation checks - member £99+vat | non-members £150+vat
  • The full letter of credit service – please ring for a quote as prices depend on quantity.  


Credit where credit’s due

They may be a little scary to the uninitiated, but Letters of Credit have become an essential tool in international transactions, ensuring payments for goods or services are on time and for the correct amount. In some markets they’re absolutely essential.

You might be uncertain about how they work but your Lincolnshire Chamber has a team who know them inside out. Our Letter of Credit specialists have spent many years working in international trade documentation, acting as trouble shooters when businesses are using them for the first time – or when snags crop up.

Letters of Credit are a failsafe way of guaranteeing you get paid properly and promptly, it’s an old-established method guaranteeing payment and it gives people a line of credit within the bank.

Lincolnshire Chamber operates an affordable and flexible service. We can guide you through the process making sure all the necessary documents are in order. All you have to do is ask.

For some companies using a Letter of Credit for the first time can be a leap of faith but this well tried and tested system is the best tool in your armoury for certain markets.

Do you really need a confirmed Letter of Credit?
Letters of Credit cause more problems than almost anything else in an export transaction. It should be remembered that a Letter of Credit is a contract, and just as the beneficiary (exporter) expects to receive the full amount of money due, so the Bank and ultimately the customer, expects to receive exactly the documents with the wording specified in the contract. Banks are currently rejecting about 70% of all first presentations.

Like any contract, details of the letter of credit should be negotiated by the sales person and agreed before an application is made. Amendments cost money, take time and can cause ill feelings. A little care taken right from the start can avoid problems later on.

Do you really need a confirmed credit? Confirmation is difficult to obtain and increases costs. Presentation of correct documents is essential IN EVERY DETAIL. One mistake can create the risk of delayed payment, or even non-payment. “near enough” is NOT good enough.

Read our top ten tips to help increase your success

  1. Ensure you are aware of all documentary requirements and their costs. Letters of Credit can cost hundreds or even thousands of pounds. Minimum charges can be high. You should include the costs in your selling price.
  2. Ensure that the description of goods in your quotation/proforma is as brief and succinct as possible. The longer and more detailed the description, the greater the possibility for errors and non-payment.
  3. Tell your customer what details you want and what documents you will provide. Use UCP600 as a guide. You know what you can provide. Some documents may cost you a lot of money and take time to obtain. Make sure the terms of the credit are reasonable and are costed.
  4. Ask for a faxed copy of the application before your customer submits it to his bank. You can then have a final check that the terms called for by your customer are achievable and acceptable.
  5. Immediately on receipt of the credit, take photocopies – for freight forwarder and all in house who created the quote and who will be dealing with any documents. Your freight forwarder is a vital link. They should check the credit, as well as you, and tell you if they need amendments to fulfil their roles.
  6. Ensure all in house agree on the description of the goods for all documents. All staff who have anything to do with documents must use the same words and terminology. Documents should agree with each other.
  7. Create a check list of documents needed as you check the credit. A list made at first reading will be an invaluable check-list when collating documents.
  8. Ensure you have sufficient time to manufacture and despatch goods, and submit documents after despatch. Late shipment and/or presentation can risk non-payment. Amendments take time and cost money.
  9. Ask your customer for any necessary amendments immediately. If step 4 has been taken, amendments should not be necessary. If they are needed, you must request them immediately and decide who pays for them.
  10. Ensure two people check documents in a quiet room before presentation. Use UCP600 as a guide. The person who has been dealing with the details cannot be expected to check properly. A fresh set of eyes is needed as well. Ideally checking should be done away from phones and other interruptions. UCP 600 must be followed in detail.

This service is delivered in partnership with Chamber International.

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