Letter of Credit (L/C)

Letter of Credit (L/C)

1. Product Definition The import L/C is a kind of payment commitment that BancWest Corporation makes to a foreign exporter upon the application of an importer and with which the Bank promises to perform the payment obligation to the exporter if all terms and conditions specified in the L/C are met.

2. Service Advantages

(1) Improving your negotiation position. To open a L/C, it is equivalent to provide a conditional payment commitment to the exporter in addition to commercial credit. With your credit enhanced, you can bargain a more reasonable price for the goods concerned based on the L/C;

(2) Reducing your trade risks. Changing commercial credit into bank credit gives more guarantee to the trading activities.

3. Applicable Scope

(1) The exporter requires settlement by way of L/C;

(2) Both the importer and exporter hope to take the bank credit as the credit intermediary for commercial transactions;

(3) Both the importer and exporter hope to solve the problem of capital tie-up with the trade financing offered by a bank by way of L/C settlement.