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Letter of Credit (LC)

Letter of Credit (LC) – GF may issue, accept and monetize LC with top rated and non-rated Banks, some conditions will apply and depends on banking institution.

LC | Letter of Credit on 365 trades

This instrument usually used in global trade finance, credit enhancement.

LC is a bank service ensuring payment of the amount indicated in the letter of credit to the Seller as per the Buyer’s instructions against the shipment of goods, performance of other conditions stipulated in the letter of credit and submission of relevant documents.

Thus, upon transfer of ownership over the goods sent by the Seller to the Buyer and submission of the document confirming the fulfillment of other conditions of the LC, the Bank (issuer) will ensure the transfer of payment to the Seller’s account.

Advantages of LC for the Buyer:

• Elimination of risk of losing money for the Buyer

• Payments are made after fulfillment of the Seller’s contractual obligations

• Transfer of ownership over shipped goods to the Buyer within the period indicated in the LC and according to other terms

Advantages of LC for the Seller:

• Guarantee of payment independent of the Buyer (subject to the fulfillment of contractual obligations)

• Possibility of payment before handing the goods over to the Buyer

• Possibility of execution of complex commercial contracts

Monetization | Discounting | Forfaiting (see Page – MONETIZATION) – GF may also provide and/or monetize SBLC’s on other Top Tier Rated and Non-Rated Banks (terms/conditions will apply).

Additional information or details – Our Global Team will reply on any related inquiry with complete info submitted (proper contact numbers, company details) within 24 hours, as one of our BDM | Business Development Managers will be assigned locally.


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