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Import Letter of Credit in Thailand: Is it allows the importer to get a better bargain on the prices of imported goods?

Letter of credit is an assurance given by the buyer’s bank to send the amount to the seller through seller’s bank on maturity, according to the terms and conditions of the document based on the contractual agreement between buyer and seller. However, Import Letter of Credit is one of the safest systems of importing goods in Thailand, and it allows the buyers to control shipping dates or facilitates a shipment schedule. If you want to expand your global business with safe payment, then you have to know about import letter of credit in Thailand in details. Carry on reading the upcoming passage to learn more.

Documents usually required under an Import letter of credit

    •         A bill or draft
    •         Commercial invoice
    •         Customer invoice
    •         Bill of lading
    •         Certificate of origin
    •         Insurance policy
    •         Inspection certificate

     Advantage of import letter of credit in global business

    • A letter of credit transaction reduces the risk of non-performance by the supplier.
    • Based on a timely delivery schedule, the consumer collects goods on time before he can execute his business plan smoothly and efficiently, satisfying his clients promptly and effectively.
    • A bank issue import letter of credit and ensures the timely and full payment to the seller. Here, if the buyers cannot make such a payment, the bank will make payments for that person or organization.
    •  Here, the exporter has to submit legal documents as proof of a shipment of agreed-upon goods before the payment can be made. The terms and conditions under an import letter of credit cannot be transformed unless all the parties agree, so it’s officially binding.
    •  Import Letter of Credit in Thailand allows the importer to get a better bargain on the prices of imported goods and also enter extra funding for expanding the business. It provides a safe way to expand sourcing into new geographies for getting lower prices and hence increasing importer’s business limits.
    •  The Buyer can buy the goods and pay for them after shipment of goods.
    •  It blocks no fund until they receive documents after the shipment, improving cash flow.
    •  It helps to grow finance for the making of goods, meeting working capital requirements.
    Well, there are many uses for each type of Import Letter of Credit, you will no longer be in doubt. To learn more about import letter of credit in Thailand, contact- RNR Trade Corporation Company Limited (RNR-TCCL) is a Non-Bank Financial Company. They offer Trade Finance service by providing Letter of Credit (LC, DLC, MT-700), Standby LC (SBLC, MT-760), Bank Guarantee (BG, MT-760), Performance Guarantee, Banker’s Draft and Bank Comfort Letter (BCL, MT-799), without obtaining any financial collateral. So, visit this link -rnrtradecorp.com to learn more.
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