March 2016 - MJ Hayward

What is a Confirmed Letter of Credit?
What is a Confirmed Letter of Credit?

What is a Confirmed Letter of Credit?

admin2018-05-24T15:26:16+00:00March 5th, 2016|

A confirmed credit is one to which a second bank, usually in the exporter’s country, adds its own undertaking to that of the issuing bank, that payment will be made. This is appropriate if an exporter does not find the security of an unconfirmed credit sufficient (due to issuing bank risk or political / economic [...]

Do Letters of Credit Work?
Do Letters of Credit Work?

Do Letters of Credit Work?

admin2018-05-24T15:29:44+00:00March 3rd, 2016|

At a recent exporter’s breakfast hosted by a well known UK bank which promoted the use of letters of credit, a disgruntled manufacturer raised his hand during the question and answer session and made some very sweeping statements including: “Letters of credit just don’t work, they are a waste of time, you just don’t get [...]