The most challenging part of the letter of credit process arises during the export stage. In order to receive payment from banks under a letter of credit, the exporting company is obligated to present compliant documents.
Otherwise, if a confirming bank is involved in the transaction, it will issue a discrepancy notice and be released from its payment obligation. If there is no confirming bank, the issuing bank will do the same.
In the case of a discrepant presentation, payment is no longer made under the letter of credit and is instead processed similarly to documents against payment transaction. This situation is often far from acceptable for exporters.
The most ideal solution for exporting companies is to submit discrepancy-free documents to ensure that payments are collected smoothly and as quickly as possible.
As Letter of Credit Consultancy Services, we specialize in export letters of credit, with an overwhelming 95% focus on this area.
Scope of Export Letter of Credit Consultancy
Our services for export letters of credit include the following:
- Reviewing the letter of credit draft or the issued letter of credit text.
- Providing the client with a revision letter (in English) to request necessary amendments in the letter of credit text.
- Preparing draft documents and sending them to the client via email before shipment.
- Checking documents such as the bill of lading and certificate of origin before approval.
- Verifying the final versions of all documents before submission to the bank.
- Providing support to companies until the letter of credit process is completed and payment is received.
As seen from the points above, we handle the technical aspects of the export letter of credit process on behalf of our clients. What we expect from our clients is to facilitate communication between us and third parties.
As Letter of Credit Consultancy Services, we never communicate directly with our clients’ customers. Our interactions with banks, customs brokers, and freight forwarders are conducted exclusively through the companies we provide consultancy to.
How Our Export Letter of Credit Consultancy Helped Companies Succeed
Here are a few examples of companies that turned complex processes into smooth, profitable transactions with our export letter of credit consultancy.
Export Letter of Credit Consultancy Service for an Exporting Company in İzmir to Algeria
An exporting company based in İzmir, working for the first time with a letter of credit, won a contract for the exterior cladding of a hotel in Algeria.
The required materials for the hotel’s exterior cladding were exported from Turkey to Algeria with at sight and confirmed letters of credit used as the payment method.
The transaction, worth EUR 1,154,665.00, was completed in a single shipment, and payment was received without delay upon the first presentation of the documents.
Export Letter of Credit Consultancy Service for an Exporting Company in Istanbul to Abu Dhabi
We provided export letter of credit consultancy for an exporting company based in Istanbul for the wooden furniture materials they were supplying to Abu Dhabi. The process was successfully completed.
In this transaction, valued at USD 629,294.60, the shipment was made in eight separate deliveries, ensuring the smooth completion of the deal.