Make your transaction easy and trouble-free with Letters of Credit

In the international trade, there is the matter of transaction involved between two different participating nations. As the trading partners are not familiar with each other, there can be the mistrust of the payment method. In Thailand, the traders are looking for a good solution. Letter of credit in Thailand is a good and effective option. In the article, you will know about the option and its different good effects.

Letter of credit: Know a brief idea

A letter of credit is a popular and effective method that makes good use for the easy and stress-less payment method. It has another name documentary credit or banker’s commercial credit. This payment mechanism has great usage in international trade. It is to provide the economic guarantee from the creditworthy bank to the seller. There is the matter of the reliability that makes the usage of the financial option more reliable. Know about the advantages in the next segment.

Letters of Credit in Thailand
The positive results of letters of credit

A letter of credit has different advantages in the international business. Some of the important ones are:
  • Customisable: It is to note that the letter of credit is customisable. Both the trading partner can present their conditions and terms according to their requirements. Then they come to the mutual lists of clauses. There is also custom from the one transaction to another with the similar business partners.
  • Safe expansion of the business: A letter of credit gives the traders an option to transact with the unknown partners. There is also a great scope to establish a great relationship to expand its business. The more they will grow their business the more they will prosper.
  • Guarantees the seller of the money: This option makes the issuing authority independent of the trading partner’s obligation and the contention stemming from them. The authority needs to check the submitted documents to satisfy the beneficiary and pay the full amount.
  • Quick to execute: A letter of credit is swift to execute. There are some initial terms and conditions, the seller and the purchaser have to present the evidence of the material type with the shipping documents. There will be the nod from the concerning authority and there will be the full payment.
Contact a reputed NBFC
Merchant Trade Guarantee Corporation Company Limited is a reputed and pioneering NBFC that provides different options for the transaction options including the letter of credit in Thailand. They offer reliable and fast service at an affordable rate.
Location: Thailand

Comments

Post a Comment

Popular posts from this blog

A basic knowledge of Import Letter of Credit in Thailand

Image
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
Read more

An Informative Discussion On Bank Guarantees in Thailand With Example

Image
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
Read more

Significance Of Non-Performing Letter Of Credit You Should Know

Image
Non-performing Letter of Credit is nothing but a legal document that a bank issues on the behalf of the clients. Non-performing letter of credit, also known as SLOC (Standby Letter of Credit) assures the payment on the client’s behalf if any client cannot fulfill the agreement. Like all places all over the world, in Thailand, this letter of credit provides security in business transactions. Feeling interested to know about non-Performing letter of credit in Thailand ? Go through the passage mentioned below and gather significant information about this potent financial tool. Importance of Non-Performing Letter of Credit Standby letter of credit is important and beneficial both for the sellers and buyers. Go through the passage mentioned below and know the significance of the standby letter of credit in brief. SLOC presents a significant role in the business field.  According to any specific agreement, if the client does not pay, the seller can provide a Standby letter of cre
Read more