A basic knowledge of Import Letter of Credit in Thailand
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 that no transaction will be completed till the product is in his hands.
Import Letter of Credit is a guaranteed by the buyer’s bank that the payment will be given to the seller. You need to apply to the bank for an import letter of credit. To open it, everyone must first have a bank account. In this case the banks usually demand the documents-
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 that no transaction will be completed till the product is in his hands.
Import Letter of Credit is a guaranteed by the buyer’s bank that the payment will be given to the seller. You need to apply to the bank for an import letter of credit. To open it, everyone must first have a bank account. In this case the banks usually demand the documents-
- Account No
- Company's trade license
- VAT certificate
- Bank contract documents
- National Identity Card
- PI invoice
- Guarantee form etc.
The party involved with the Import letter of credit. They are:
- Applicant
- Beneficiary
- Issuing bank
- Advisory Bank
- Nominated Bank
- Confirming Bank
- Reimbursing Bank
Well, this transaction reduces the risk of non-performance by the supplier. It ensures the timely and full payment to the seller. Here the buyer can buy the goods and pay for them after shipment of goods and it blocks no fund until they receive documents after the shipment, improving cash flow.
To know more, click below
To get more info on Import Letter of Credit in Thailand, make contact with - Merchant Trade Guarantee Corporation Company Limited is a trusted NBFC. They have been in business since 2000 handling various financial and broking services. They are a registered company in Thailand with branch offices in the USA, NZ, Dubai and India and correspondents in Europe and the UK. They rapidly develop trade bases in the import and export industry, project finance and trade import and export in Vietnam, Bangladesh, Australia, Hongkong, Singapore, and so on. Visit - www.merchanttradecorp.com and learn more.
To know more, click below
To get more info on Import Letter of Credit in Thailand, make contact with - Merchant Trade Guarantee Corporation Company Limited is a trusted NBFC. They have been in business since 2000 handling various financial and broking services. They are a registered company in Thailand with branch offices in the USA, NZ, Dubai and India and correspondents in Europe and the UK. They rapidly develop trade bases in the import and export industry, project finance and trade import and export in Vietnam, Bangladesh, Australia, Hongkong, Singapore, and so on. Visit - www.merchanttradecorp.com and learn more.
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