Letters of Credit offered in Hong Kong: A helpful overview
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