Letter of Credit FAQs
Why do I need to pay your fee before you open the letter of credit? Can't you take your fee out of the profits of our transaction?
We do not participate in the transactions of our clients as a party to the transaction other than a provider of certain financing. Therefore, we do not participate in the profits of our client's transactions. Our fees are the same regardless of the profit margin in the transaction.
What type of collateral do you require to open a letter of credit?
Either we require Fixed deposit as a collateral for opening of Letter of Credit or a collateral depending on the strenght of your finances. The final decision by our company to enter into a transaction is made according to a set of criteria.
I opened a letter of credit to my supplier, but he did not ship the goods. Will you refund my fee?
Once the letter of credit is opened your fee cannot be refunded. We recommend to all of our clients that they need to assure themselves of their suppliers' ability to perform before opening any banking instruments to them.