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Letters of Credit offered in Hong Kong: A helpful overview

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Letters of credit might not sound new to your ears if you remain updated about international sales transaction methods. Offered in Hong Kong and other countries, LOC refers to a mechanism of securing international payment transactions. The rapidly increasing demand for the Letters of Credit in Hong Kong has leaded different NBFCs and banks to provide this.  Before you opt for it for securing your payment, let’s know about LOC in brief. Learn more about Letters of Credit It involves the guarantee from the issuing bank. In case the buyer of LOC fails to complete the payment, the issuing bank will pay on his behalf. To make this possible, the buyers require fulfilling all requirements of the letter rightly. LOC also gives excellent protection to buyers. In case you pay for any product, and the seller can’t deliver the products, SLOC can help. SLOC or standby letter of credit works like a penalty to the seller who was unable to deliver your product. Different types of LOCs are available o
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An Informative Discussion On Bank Guarantees in Thailand With Example

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It might seem a challenging task to enhance your business in the cut-throat business world of Thailand. Stop worrying now about increasing the earning, and opt for the bank guarantees in Thailand . It is a helpful means of purchasing goods from an unknown party. In the continuing lines of today’s article, we have tried to provide you with comprehensive knowledge on it. Continue reading. What do the bank guarantees mean? Let’s keep the thing simple. It is nothing but a legal promise. This document is all about demonstrating that a person comes with sufficient funds usable for the business transactions. Bank guarantees are available in bank or custody statements form. Commercial banks or NBFCs give these guarantees to the people remain involved in the transactions.  A significant fact of this guarantee is, this will be valid for a certain period. After crossing it, this document will be nothing more than a useless paper. Bank guarantees, available in two forms, come with a baggage of ben
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Location: Thailand
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How does the Non-Performing Letter of Credit work & its significance

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The standby letter of credit is a legal document that comes with a certain purpose. The main goal of this document is to guarantee the payment of a bank to the seller. SLOC or Non-Performing Letter of Credit can felicitate all the international trades, especially between the unknown companies. Performance and financial- these two are the main types of SLOC. Read the article, and get introduced to this excellent financial tool in brief. Working methods of Non-Performing Letter of Credit In most cases, it is sought by any specific business to get a contract. The contract works as a standby agreement, as the bank remains bounded to pay in the unwanted scenarios. It is true, banks or NBFCs give a guarantee about the payment. But to get this, the beneficiary needs to make sure that the norms are followed rightly. For example- any NBFC or banks can refuse to make the payment if there is a delay in shipping. The recipient of this guarantee needs to be sure that he is working with a capable co
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Here’s What People in Thailand Should Know about Financial Guarantees

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 Every business owner may face a situation when they can’t take forward their business due to the lack of finances. Well, in this respect, the financial guarantee can give the best solution. In Thailand, you will find many NBFCs (Non-Banking Financial Company) that are offering financial guarantees these days. Now, you are thinking about grabbing this opportunity, right? Prior to that, you must have a clear understanding of this term. So, before you opt for financial guarantees in Thailand , read the entire article. What Is Financial Guarantee? A financial guarantee is nothing but a contract given by financial institutions. With its help, an individual or a company can repay their debts. It can assure you to pay your debts when you are not able to do. How Financial Guarantees Work? For example, company X has several subsidiaries. And company A is one of them. However, company A wants to build a manufacturing facility. Hence, it needs funds and takes out a loan from an NBFC. In this sit
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Beginner’s Guide to Import Documentary Collections & Export Documentary Collections

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Are you involved in export and import business? Do you have any idea about export documentary collections and import documentary collections? If no, then read this article to the end. Here you will get clear information on these.   Import Documentary Collections: Is it a good choice for international trade? Import Documentary Collections are tools issued by international banks in the export trade. In this case, most NBFC help to simplify the administration of a client’s documentary import collections. This service rendered by a bank concerned advising you of the delivery having taken place, collecting from you the payment for remittance to your supplier’s designated bank and at the same time releasing to you the shipping papers that you need to clear the goods. Import Documentary Collections are an easy and cost-effective option to Import Letters of Credit. You can manage transactions and collections in multiple currencies and receive notification via mail or phone calls when import d
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A basic knowledge of Import Letter of Credit in Thailand

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Letters of credit are a secure way of paying for goods in international trade. There is a concern between buyers and sellers in imports and exports as they are located in different countries. The buyer is afraid that the product will be misunderstood and the seller is afraid that the product will be priced. In this case, the letter of credit is the means by which the seller pays the price through the bank and guarantees the correct delivery of the goods to the buyer. Well, LC benefits both the importers and exporters, and today we will discuss on Import Letter of Credit in Thailand . Are you curious? Import letter of Credit is commonly used in international trade transactions, whereby the Issuing Bank promises to pay the Exporter. Yes, a letter of credit is mainly a kind of guarantee given by a bank through which the fidelity between the importer and the exporter is gained and they are assured that the seller will get the price of his product and the buyer is also assured tha
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Location: Thailand
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Why most business owner believes in Non-Performing Letter of Credit

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Non-performing Letter of Credit is nothing but a contractual chronicle that a bank releases on the favor of the applicants. It is also accepted as Standby Letter of Credit. It promotes global trade between firms that don’t know each other and have different laws and regulations. With a non-performing letter of credit , you can secure yourself by boosting a safety net that assures payment. However, to learn more, keep scroll down this page. A non-performing letter of credit is written contracts of an approving bank to pay the cash to a beneficiary on side of their applicant if the client does not pay the beneficiary. It helps ensure that the buyer will get the cargoes that are summarized in the detail. However, non-performing letter of credit gives a commitment from a bank, which should be a neutral third party. If the client drops to do anything, the bank grants the beneficiary to the customer. Finally, the finances come from the customer who applies for the letter of credit or n
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