Letter of credit is a payment method often used in the process of foreign trade export. It is divided into irrevocable sight letter of credit and usance letter of credit. Generally, we only accept irrevocable sight letter of credit. Some countries can only pay by letter of credit, not bank transfer. Like these countries we can complete the transaction by irrevocable L/C at sight. There are many terms of the letter of credit. Before opening the letter of credit, we need to discuss some terms with the customer, and then open the letter of credit after the negotiation is completed.

So what needs to be discussed with customers? For example, the delivery date, the general letter of credit will have a delivery date, and the delivery should not be later than this date, and this date should not be too early, so as not to be late for delivery. Another example, the credit issue of the issuing bank should be investigated before the transaction, whether it is in the blacklist, whether there is a stain on the reputation. This is very important. Some issuing banks will cheat the suppliers with their customers, and will not pay after the goods arrive at the port. Although such problems are rare, they cannot be ignored. For another example, a bill of lading such as a sea way bill cannot be issued. Once such a bill of lading is issued, the supplier has no control over the goods, and the customer can pick up the goods at any time without paying. This is something we should be careful about.

In short, before opening a letter of credit, one must carefully read the soft terms inside to minimize the risk. Our products include sound-absorbing materials and thermal insulation materials. When necessary, we can make letters of credit with customers at sight.