USE LETTERS OF CREDIT (L/Cs) TO GET FINANCING LETTERS OF CREDIT (“L/Cs” FOR SHORT) are valuable for financing trade activities in import-export, for guaranteeing loans, and for a variety of other financial transactions. To get an L/C or have one confirmed (evaluated as good) take these easy steps now:
1. Associate yourself with an international bank having a strong network of overseas correspondent banks and associates 2. Work with branches of overseas banks having offices in your country because they can speed all types of international transactions 3. Insist that the bank have the ability to confirm unconfirmed L/Cs you might get from overseas.
(When a bank confirms an (L/C) it--in effect--tells you that the L/C is good and can be trusted.)
WHEN A BANK ISSUES AN L/C IN YOUR FAVOR--that is an L/C you use to:
*Collateralize a loan you get for business or income real estate use *Pay for imported goods which you sell in your own country You will be charged a nominal fee--typically 0.25%. This amounts to $2.50 per $1000 L/C. Thus, on a $100,000 L/C you'll pay $2500 when the L/C has been in force for one year. This will be about $200 a month.
But during that time you can use the L/C to do any of the transactions mentioned above. So the L/C is really cheap advance confirmation that you can get a loan or import salable items.
BESIDES USING AN L/C AS COLLATERAL you can also get many other useful services from your issuing bank. Thus, the bank:
*Can issue valuable trade leads, telling you who's seeking what products or services in overseas countries around the world *Can handle paperwork for loans, imports, exports, and other international transactions for you or your client *Can be a valuable international partner anywhere in the world for you or your client
To learn more about this author, visit Tyler Hicks's Website.
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