Letters of Credit
An irrevocable letter of credit is an instrument that assists in the payment of a transaction. It carries the promise of a party, other than the obligor, to effect payment upon receipt of complying documents. Generally, letters of credit are subject to a standard set of rules.· These rules are issued or endorsed by the International Chamber of Commerce.
Import Letters of Credit
Export Letters of Credit
Transferable Letters of Credit
Standby Letters of Credit
Advantages for the Buyer:
- Documentary conditions for payment are clearly defined.
- Responsibilities for shipping costs are clearly defined using standard INCOTERM.
Advantages for the Seller:
- Third party assurance of payment.
- Bank and country risk can be mitigated with a local bank confirmation.
L/C Trac – Online Service
If your business requires a large volume of L/Cs, you can use First American's L/CTrac to further streamline the process and to monitor the issuance of·your own L/C exposure.
This exclusive PC-based information and transmission system makes it possible for you to electronically generate your own Import L/C application and amendment requests 24 hours a day, 7 days a week. The more L/Cs you issue, the more the L/CTrac system can significantly increase·your efficiency and reduce the cost of your transaction processing.
- L/CTrac provides you with a library of electronic templates - pre-formatted applications - which allow you to efficiently complete the L/C application and amendment requests.
- You can transmit the L/Cs via the internet in real time to our International Division and immediately receive an L/C Number.
- L/CTrac automatically checks your application or amendment request for consistency.
- L/CTrac provides you with an automatic update of the status of all pending L/Cs transacted through First American each time you transmit.
- L/CTrac also allows you to generate your own reports including open transaction, currency, vendor, and balance reports.