Letter of Credit (LC)
Trade Finance & Trade Goods Payment Security Solutions
PURCHASE YOUR LETTER OF CREDIT WITH US TODAY.
Guarantee of Payment: The issuing bank guarantees the seller (beneficiary) will receive payment, as long as they fulfill the terms and conditions specified in the LC.
Conditional Payment: Payment is made only if the seller presents the necessary documents proving that the terms of the LC have been met (such as shipping documents, invoices, etc.).
Used in International Trade: LCs are commonly used in cross-border transactions to mitigate risks, such as non-payment or non-delivery, between buyers and sellers in different countries.
Neutral Third Party: The bank acts as a neutral intermediary, reducing the risk for both the buyer and seller.
How a Letter of Credit Works:
Agreement: Buyer and seller agree on terms, and the buyer applies for an LC from their bank.
Issuance: The bank issues the LC to the seller (beneficiary) through the seller’s bank.
Conditions: The seller must meet the conditions of the LC, such as shipping goods or providing specified documents.
Payment: Upon presentation of the required documents, the issuing bank pays the seller.
Advantages
For the Buyer: Ensures that payment will only be made once the goods or services are delivered as agreed.
For the Seller: Guarantees payment from a reliable financial institution, reducing the risk of non-payment.
Instrument & Service Description:
A letter of credit is one of the oldest and most standard forms of payment for transactions in international trade. Foreign exporters that deal with unfamiliar companies thousands of miles away are naturally uncomfortable investing money to produce goods and ship them without any assurance of payment. Without a letter of credit, exporters generally ask for substantial deposits or other payment guarantees. Letters of credit allow buyers to avoid these undesirable alternatives.
Likewise, importers dealing with foreign suppliers don’t want to pay upfront for goods that may not correspond to purchase order specifications or may arrive late, if ever. Naturally, buyers would prefer to postpone payment until they receive the goods as expected. Letters of credit can prevent buyers from losing deposits when the sellers’ performance is deficient in any way. Without the letter of credit, buyers are left to fend for themselves to recover their deposits if goods are not produced according to spec.
For both buyers and sellers in a given transaction, letters of credit represent a reasonable compromise that protects both sides’ interests by assuring exporters that they will get paid once they produce and ship the goods according to certain documentary requirements that in turn protect importers’ interests. This is akin to an escrow arrangement, ensuring exporters that the goods won’t be released until they get paid and providing buyers with a guarantee that they will get the goods if the exporter is paid.
Remember that Ice Invest Capital Trading offers unsecured letters of credit, something most other financiers do not. Unsecured means you do not have to tie up valuable collateral to open a letter of credit.
Important
: Letters of Credit (LC) are normally forms of payment security or payment guarantee between a Buyer and Seller of Goods. Therefore the Letters of Credit (LC) we provide clients are NOT MONETIZABLE and are NOT TRANSFERABLE like a Bank Guarantee (BG) would be. A Letter of Credit (LC) is a specialist payment mechanism that is used for a specific buy and sell goods transaction, a LC cannot be monetized by a 3rd party.
Bank
ABN AMRO Bank
Bank Hapoalim
Bank of Baroda
Bank of India
Bank Leumi
Bank Santander
Bank Winter
BNP Paribas
China Construction Bank
CIBC
Citibank
City National Bank
Dah Sing Bank
DBS Bank
East West Bank
Habib Bank
Hamni Bank
HSBC
IDB Bank
Indian Overseas Bank
New York Community Bank
Standard Chartered Bank
Standard Commerce Bank
TD Bank
UCO Bank
U.S. Credit Corp
Wells Fargo
LC
NO
YES
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YES
YES
YES
YES
NO
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
NO
YES
YES
YES
YES
YES
DLC
NO
YES
YES
YES
YES
YES
YES
NO
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
NO
YES
YES
YES
YES
YES
SBLC
YES
YES
NO
NO
YES
YES
YES
YES
NO
YES
YES
YES
NO
NO
YES
YES
YES
YES
YES
NO
YES
YES
YES
YES
NO
YES
YES
BG
YES
YES
NO
NO
YES
YES
YES
YES
NO
YES
NO
YES
NO
NO
YES
YES
YES
YES
YES
NO
NO
YES
NO
YES
NO
NO
NO
Letter of Credit (LC) Benefits
A letter of credit minimizes risk, maximizes control, and optimizes profits associated with international trade by making transactions simpler, smoother and safer for all sides.
⦁ You may not have the necessary collateral requirements or relationship with the bank to get a letter of credit—but we do
⦁ You don’t have to leave deposits with your suppliers, since your letter of credit will be opened for the full amount of the transaction—so your cash is not tied up or at risk while your supplier can often borrow against a letter of credit
⦁ You may significantly increase your ability to do business with companies outside the U.S. by bolstering your financial position with your suppliers
⦁ You can build safeguards into the letter of credit, including inspection of the goods and quality control, and set production and delivery times. This gives you more quality control over your goods.
⦁ Payment is assured as long as you comply with the terms and conditions of the letter of credit.
⦁ The credit risk is transferred from the buyer to the issuing bank, which is obligated to pay even if the buyer goes bankrupt.
⦁ You have easier access to financing and are able to transfer all or part of the letter of credit to another party, e.g., to purchase raw materials
⦁ Collection time is minimized, as the letter of credit accelerates payment of receivables, and foreign exchange risk is eliminated when it is issued in the currency of your country.
We use the Bank SWIFT Network to have the clients Letters of Credit (LC) delivered Bank to Bank. We operate a reliable, efficient delivery and authentication process to ensure all Letters of Credit (LC) are successfully delivered for our clients.
Client Deposits are 100% Protected with 2 Levels of Protection
We value our relationships with our clients so much that ALL CLIENT DEPOSITS for Letters of Credit (LC) receive 2 Tiers of Protection which are:
⦁ Corporate Refund Bond (indemnify)
⦁ Non Performance Bond of $5,000,000
Letter of Credit (LC) Costs.
Costs are customized to each Goods transaction and therefore a exact quote can be provided once an completed application is received, but as a pricing guide:
⦁ A 90 Day Letter of Credit costs 3.5%
⦁ Additional 30 Day periods cost 1.5%
Estimated Completion Time:
⦁ Letters of Credit (LC) are normally issued within 72 hours of all documentation and payments being completed by the Applicant
Step 1: Application
Simplify your note-taking with our intuitive app, perfect for capturing and organizing your thoughts. Whether it’s ideas, to-do lists, or detailed notes.
Step 3: Draft Review and Opening Payment.
a) Once you and your supplier finalize the draft and sign off your acceptance of the draft (changes are free of cost).
b) We then issue you with an Invoice for the Letter of Credit (LC), which you arrange to pay.
c) Upon receipt of your wire payment, we release the finalized Letter of Credit (LC) to the bank for issuance and delive.
Step 5: Presentation of Documents.
Once the supplier has prepared and loaded the goods for transit, they must present the specified documents for that shipment to their bank. Their bank will transmit these documents to our bank. We will email you copies of the presentation (and all documents submitted by the supplier) for your review and approval
Step 2: Issuing of Draft.
We will then create a draft of the Letter of Credit (LC) for you and your supplier to review, or you send your supplier draft for review and approval.
Step 4: Issuance.
Typically, the bank will issue the Letter of Credit (LC) within 48 hours of release. Upon issuance, we email you a copy of the LC as transmitted by SWIFT, including the LC reference number. Your supplier’s bank should receive and confirm the Letter of Credit (LC) transmission shortly thereafter.
Step 6: Payment for Goods.
Before our bank releases the original documents, we must receive payment for the presentation. Upon receipt of payment, we consign the documents to you and overnight them to your freight forwarder or whomever you designate – thus completing the transaction.
Top 6 Reasons Why Ice Invest Trading is #1
Company Founded in 1990
Banking Consultants NOT Brokers
Your Privacy is our Priority.
Our Integrity is Non Negotiable!
We are the Provider for up to 99% of Deals we Process
We Operate our own Private Placement Program & Account Management Systems.
⦁ Our Purchased Standby Letter of Credit (SBLC) delivery service is Non Negotiable. We do not change the terms, structure, delivery procedures or prices of this service.
⦁ We no not offer FREE Standby Letters of Credit (SBLC) or allow clients to pay for the Standby Letter of Credit (SBLC) after the MT760 has been received. If the Bank is not paid the Deposit to send the Standby Letter of Credit (SBLC), then no Standby Letter of Credit (SBLC) will ever be sent or delivered. Banks simply do not work for free or on the hope that after they deliver a Standby Letter of Credit (SBLC) by MT760 that the client may pay them. For more information on this, please ⦁ read here
How we Work
At Ice Invest Capital Trading, we exclusively deal with authentic transactions, genuine clients, and real Letter of Credit (LC) that are delivered directly to our clients' nominated bank accounts. The SWIFT Network, recognized as the Gold Standard in banking, validates all aspects of these transactions, providing a secure and respected platform for safe settlement.
Complete your successful transaction with Ice Invest Capital Trading and experience reliability and transparency every step of the way.
