Hansard can arrange for the issue of cash-backed documentary irrevocable letters of credit (LOC) through our main banking relationships in Guernsey. Letters of credit are widely used by importers and exporters as a useful method of buying and selling goods of significant value securely between unconnected trading parties. The order is an irrevocable payment undertaking, and specifies a maximum sum of money not to be exceeded.
Typically, the documents a beneficiary has to present in order to receive payment, include a commercial invoice, bill of lading, and documents proving the shipment was insured against loss or damage in transit. However, the list and form of documents is open to negotiation and might contain requirements to present documents issued by a neutral third party, evidencing the quality of the goods shipped, or their place of origin. |
 |
|
