Our Documentary Letter of Credit (DLC) is primarily issued by Bank Winter, a European Bank that was founded in 1892, was ranked 16th in the BIS ratio (The Banker) among the 1,000 largest banks worldwide and is one of the largest privately owned Merchant Banks in Europe who specialize in Trade Financing and Investment Banking.
Documentary Letter of Credit (DLC) Introduction
(also known as Commercial Letters of Credit CLC)
A documentary 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 standard chartered . 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.
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 Documentary Letter of Credit (DLC) delivered Bank to Bank. We operate a reliable, efficient delivery and authentication process to ensure all Documentary Letters of Credit (DLC) are successfully delivered for our clients
We value our relationships with our clients so much that ALL CLIENT DEPOSITS for a Documentary Letter of Credit (DLC) receive 2 Tiers of Protection which are:
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 Documentary Letter of Credit (DLC) costs 3.3% plus a £500 Additional 30 Day periods cost .6% plus £150
Documentary Letter of Credit (DLC) CostsA Documentary Letter of Credit (DLC) is normally issued within 72 hours of all documentation and payments being completed by the Applicant.
Unfortunately Trade Finance DLC, CLC, LC and SBLC are exempt and do not earn Broker Commissions. This is because Trade Finance deals have very small margins and tend to be smaller transactions between 200K and 3M.
We will then create a draft of the Documentary Letter of Credit (DLC) for you and your supplier to review.
Typically, the bank will issue the Documentary Letter of Credit (DLC) within 48 hours of release. Upon issuance, we email you a copy of the DLC as transmitted by SWIFT, including the DLC reference number. Your supplier’s bank should receive and confirm the Documentary Letter of Credit (DLC) transmission shortly thereafter.
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.
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.
Accepted Criteria: Clients that comply with our required Client Standards and accurately and correctly complete the Documentary Letter of Credit (DLC) Application. Rejected Criteria:
standard chartered . requires clients meet key standards and pass compliance in order for us to consider working with them. We do not accept all clients because doing business with standard chartered . is a unique Privilege given solely to real, genuine, authentic clients, not a Right that is attainable by all. View our required Client Standards here.
We solely deal with real deals, real people and real Documentary Letter of Credit (DLC) that need to be delivered to our clients nominated bank account. The Bank SWIFT Network is the Gold Standard that validates all aspects of this transaction and provides a respected industry platform where a safe settlement can be facilitated. Close your successful Documentary Letter of Credit (DLC) transaction with standard chartered . today.
With 35 Years of Finance and Banking Industry Experience the standard chartered . Executive Team understands the Banking Industry from the Inside, because members of our Executive worked in the Financial Instruments Department of a World Top 25 Bank. We can Achieve Results others can't because we understand from the Inside, what it takes to close a deal from the Outside!