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    Letter Of Credit

    Letter of Credit

    LC's are used in international transactions to ensure that payment will be received where the buyer and seller may not know each other and are operating in different countries.

    We deal with two types of Letters of Credit

    At Sight

    Payable immediately – within five to ten days – after the seller meets the requirements of the letter of credit.

    Usance

    Also known as Deferred Payment LC or Time LC or Term LC is a letter of credit payable at a predetermined time / future date after the conforming documents are presented.

    Process Flows

    • Fill out the form available in the bottom right corner (Acquire your Trade Instruments) or contact us at this link. After completing the form, a sales team member in your region will contact you within a couple of days.
    • They will provide you with an E-KYC consent letter and invoice to start the KYC process. Please note that the E-KYC fee is non-refundable and non-adjustable against the issuance fees. We don't accept third-party payments.
    • After the E-KYC fee is paid, you will receive an email with the client KYC portal link to upload all the required KYC documents.
    • After submission, our third-party service provider will provide feedback and assist you in completing the process.
    • The buyer (Applicant) applies for an LC from EEB and submits an application, underlying agreements, and other necessary documentation.
    • EEB reviews the Applicant's application and creditworthiness. If everything is in order, EEB creates a draft instrument and sends a quote to you stating our charges.
    • Issuance fees are paid to EEB, and the LC is issued, serving as a guarantee of payment to the seller (Beneficiary).
    • EEB sends the LC to the Beneficiary’s bank (advising bank) in the Beneficiary's country.
    • Upon receiving the LC, the Beneficiary checks the terms and conditions to ensure they can meet them. If satisfied, the Beneficiary prepares the goods for shipment and gathers the necessary shipping documents (such as a bill of lading, certificate of origin, commercial invoice, insurance, etc.).
    • The Beneficiary presents the required documents to the advising bank (or confirming bank, if applicable), which checks them against the LC terms. If everything matches, the advising bank forwards the documents to EEB.
    • EEB examines the documents to ensure they comply with the LC terms. If all documents are correct, payment terms are confirmed to the Beneficiary.
    • EEB sends the documents to the buyer, who can use them to claim the goods from the carrier.
    • Goods arrive.
    • The buyer typically settles with EEB according to the terms of the LC, which might involve immediate payment or a credit arrangement.

    EEB DISCLAIMER

    Euro Exim Bank Limited is a Group of Companies with Registered Office in Saint Lucia and a Representative Office in the United Kingdom. EURO EXIM BANK LTD (REGISTERED OFFICE) is a Class A International Banking Financial institution incorporated under the revised laws of St. Lucia. The license provides authorisation to conduct business with third parties across industries and geographies worldwide. This office is regulated by the Financial Services Regulatory Authority in St. Lucia, and does not provide any services to any natural person or legal entity in St. Lucia.

    EURO EXIM BANK LIMITED (REPRESENTATIVE OFFICE) is incorporated under the laws of England and Wales with company registration number 07520196. This entity is a non-banking financial institution that facilitates international business transactions through issuance and relay of various trade finance instruments. The London-based Representative Office offers Letters of Credit and Standby Letters of Credit to corporate clients only. This office does not provide regulated or controlled services or activities.

    Important Notice: Euro Exim Bank Ltd would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services of the Bank or any intermediary bearing similar names. You should verify with Euro Exim Bank by calling the Bank's Customer Service Number on +44 208 207 2868 or emailing [email protected]. Please also be aware of bogus SMS messages and voice message calls or fraudsters who misrepresent services and impersonate the staff of Euro Exim Bank.