How To Apply For A Letter of Credit With Emerio Banque?
Being a global trader, importing & exporting particular products & services between different countries is your everyday business activity. To secure the payment & performance while executing international trade transactions, you often seek legal, reliable, and professional financial help/assistance that can provide short term working capital to your deals as well as capable of assuring your suppliers that they would get their payment on time for delivered goods & services. This is where several trade finance instruments come into the picture and letter of credit services are one of them.
If you are looking for a financial instruments provider for your international trade transaction then these following steps will help you obtain a payment guarantee letter (LC) from Emerio Banque.
Applying for LCs is quite simple with Emerio:
1. Discuss Your Requirements With Our Representative - After agreeing with your supplier/exporter, you can contact us online via our official website and inform our financial advisors about your potential dealings, requirements, and sales agreement consisting of essential information along with the details of the beneficiary. They will evaluate your financial conditions thoroughly and come up with the most suitable & appropriate type of trade finance instrument with the necessary clauses.
2. Apply with Your Proforma Invoice - After getting aware of your requirements, you can apply for the issuance of an LC with your proforma invoice so that the information can be used in a documentary credit letter application. The contents of a proforma invoice include name, address and contact details of the importers & exporters, the title of the documents, proforma invoice number & date as well as the definition of goods, etc.
3. Fill LC Application Form- The next step is to fill an LC application form consisting of several essential & useful features to aid the completion of the application form. For Example, beneficiary’s details including name & address, country, contact no, and email id, etc. along with your own details. The application form also contains details of an LC agreement (currency & amount, expiry date, type & mode of shipment, and nominated bank, etc, the shipment details (place of receipt, port of Lading, and place of destination, etc.) as well as compulsory information about the transport documents, delivery order, Insurance Certificate/Policy, and many more information which is crucial for the agreement between two parties to the contract.
4. Get a Draft With Charges - When you send your LC application to our representative, we will issue a draft of a Letter of Credit for you and your seller/exporter/supplier to get it reviewed, evaluated, and confirmed with signature. After getting approval from both of the parties, we will issue a payment invoice quoting our charges for the LC service which you need to pay to get an issuance.
5. Get Indemnity Documents - Once you and your supplier have agreed on the draft and quoted charges, we will send you indemnity documents. Also known as a letter of indemnity, it is a contractual obligation between the parties that certain provisions of the agreement will be met. It contains specific measures to protect parties from breach of contract.
6. Pay The Charges For Issuance Of LC - You need to wire the payment to us according to the documents sent to you. Once we receive the draft with your wire payment, we will release the finalized LC and forward it to the beneficiary and its bank (confirming bank) for getting approval.
7. Opening of Escrow Account - Then, an escrow account will be opened for collecting export shipment payment from you for the ordered goods & services. In most cases, it is used for the first time where the importer & exporter are conducting business together for the first time.
8. Get Copied Documents After Shipment of Goods - As soon as the payment is verified by you, we instruct the exporter to ship the goods. Once the exporter ships the goods on the predefined date & place, the confirming bank presents us with the documents ie. Bill of Lading. Within 3 business days, we will send a copy of the evidential documents to seek your approval.
9. Pay The Beneficiary And Get Original Documents - Upon acceptance of the documents from your side, you are required to pay the beneficiary. Once you paid, we will send you the original documents which finally complete the transaction. Finally, you can have the ordered goods arrived at your place.
We are a leading and trusted financial service provider offering a range of trade financial services to protect international trade transactions in import/export businesses from associated overseas payment risks.
To help you make the right decision and to resolve your queries about LCs, we have a LC FAQ guide that you can go through.