QualityLC is Open and Here to Serve Your Export Needs
The COVID-19 crisis has certainly slowed the global economy and impacted all of us in ways we never thought possible just a few months ago. And while we are confident that international trade and commerce will rebound, financing options and credit transactions will definitely differ in scope when the world finally “reopens” for business.
How can you effectively prepare? Corporations with export sales may not be offering Open Account so readily. Relying on past payment histories to make credit decisions will be more challenging. And Credit Departments were having trouble getting buyer-accurate financials and “truthful” bank statements even before the crisis—issues that may worsen in the post-pandemic economy.
During these evolving and challenging times, the use of Letters of Credit to mitigate risk is one of the most cost-effective and definitive payment instruments available to you. The best way to ensure their positive execution is to provide LC Instructions to the Buyer/Applicant in advance of issuing an advised LC. We recommend keeping the terms simple and limiting the number of documents to six or less, ensuring that the LC is an instrument for the seamless transfer of funds and not a secondary sales contract. LCs remain a key tool in ensuring that your payment operations remain functional and effective during these unprecedented times. Please contact me directly for guidance on how QualityLC can streamline and strengthen your LC workflow and help you get back to business. We’re open and we’re here to help, and we will get through this together!
Stay well,
David W. Clements
President & CEO
Quality Letters of Credit, Inc.
Office: (650)631-5500
Cell: (650) 544-8468
dclements@qualitylc.com
