Before deciding to effect payment by letter of credit, an importer should consider the following: Will my bank be prepared to issue a letter of credit and what will be the impact on my banking facilities? Will I have to pay upon presentation of documents (ie: at sight) or can I negotiate an extended credit [...]

As many exporting businesses will be only too aware, it is very common for overseas buyers to insist that a bond or guarantee is provided usually by a bank, as a standard means of securing the terms of the contract and  then usually covering  the exporter's performance of their obligations during the period of the contract. In some instances [...]