Frequently Asked Questions• Who is QLC?
• Why should we outsource?
• How does QLC stand apart from the competition?
• How can QL/C improve our cash flow?
• Do we still need to use a freight forwarder?
• What is the process for QL/C to prepare my LC documents?
• How does QL/C interact with my company’s staff?
• How can I keep track of my LC’s?
• What does the Document Management Service include?
• What does the Document Management Service cost?
• Can I get references?
• What should I do to get started with the QL/C Document Management Services?
Who is QLC?
Quality Letters of Credit (QL/C), Inc. was founded in 1993 and has grown to become the nation’s largest independent letter of credit (LC) export documentation preparer with its sole purpose to expedite payments for exporters. With offices in San Francisco, New Jersey, Chicago and Buenos Aires, QL/C is an internationally recognized leader in LC document outsourcing with processed credits exceeding $2 billion annually.
QL/C’s export, freight forwarding and international banking expertise helps many of the country’s largest exporters speed customer payments. QL/C enables thousands of exporters to concentrate on boosting sales while QL/C manages the tedious and time-consuming LC document preparation process.
Why should we outsource?
The short answer to that is simple: you get letter of credit (LC) management that is faster, more affordable, better.
The longer answer is that LC management is ideal for outsourcing because of the many potential problems that can arise when working with LC non-professionals. In-house staff members face many challenges when working with LCs:
- Time and money associated with learning to do something that is outside of a staff member’s normal scope of responsibility
- The possibility of discrepancies and errors that come with inexperienced LC preparation
- Resources taken away from normal tasks because they are utilized for LC preparation
- Lower cash flow due to delayed payments
Remember, even the slightest discrepancy – even a small typo – can delay payments and impose penalties on clients. Good managers should ask themselves whether this is worth the risk when they know that QLC’s solution produces discrepancy-free documents that expedite payments.
Can managers justify not outsourcing to QLC? When you consider the amount of wasted resources – time, money, energy, even morale – that come with inexperienced staff trying to be international financiers instead of focusing on their core business it makes little sense not to outsource. When you factor in QLC’s guaranteed results of faster, more affordable, and efficient payments – along with secure e-commerce transactions and real-time web reporting – the choice is obvious: QLC’s LC service is simply the smartest thing to use.
How does QLC stand apart from the competition?
QLC is the world’s most complete, most connected, and most efficient LC processor. No other LC competitor offers QLC’s full range of solutions, including:
Strong strategic alliances with internationally respected critical partners
The latest technology, including real-time web reporting and secure e-commerce transactions
A staff of experienced professionals that utilize knowledge in international business, freight forwarding, banking, and other relevant industries to create a solution that optimizes your time and money.
How can QLC improve our cash flow?
When payments get expedited, cash flow increases. When documents are discrepancy-free, penalties are not charged and cash flow increases. QLC’s LC solution eliminates problems to ensure that you are working with the best cash flow possible
Do we still need to use a freight forwarder?
Yes. QLC expedites payments but does not handle freight shipping. While freight forwarders may offer documentation preparation, this often causes many problems that are eliminated when outsourcing to QLC.
What is the process for QL/C to prepare my LC documents?
When a LC is received by Exporter:
1. Fax copy to QL/C at (650) 631 5501 for compliance review.
2. Credit Review Worksheet (CRWS) are available and will be faxed back with appropriate comments.
3. QL/C contacts nominated Freight Forwarder with AWB/OBL compliance instructions.
When goods are shipped to Freight Forwarder:
1. Send Commercial Invoices and Packing List to Freight Forwarder.
2. Instruct Freight Forwarder to fax copy of AWB/OBL ASAP to QL/C.
3. Fax last page (showing total) of Commercial Invoice and Packing List to QL/C.
QL/C prepares all needed documents for banking presentation within 24-36 hours of Transport document receipt:
Web access to reports, documents and status is available.
www.qualitylc.com enter user and password to login.
How does QLC interact with my company’s staff?
QLC functions as a value-added adjunct to your staff. Our job is to focus on documentation and payment-related issues, freeing your staff from any of the burdens related to these topics. QLC does not make any credit or shipping decisions.
Each client receives a customized process to address theirs specific needs. These needs are usually defined in an initial series of conferences calls. Once these are established, many clients prefer working through email/fax communication. However, QLC encourages clients to call with any questions that may pop up. QLC’s easy-to-use real-time web reports often provide clients with all of the information they need through just a few mouse clicks, making inquiries about transaction status unnecessary.
How can I keep track of my LC’s?
QL/C keeps exporters informed through each transaction with real-time reports such as:
• Applicant Report: Provides overall view, by buyer, of banked and paid items as well as expiry dates.
• Country Report: Reveals current standing of all LCs by country.
• Issuing Bank Exposure Report: Lists current exposure including available balance and unpaid drawings categorized by issuing bank.
• StatNet E-Mail Report: Reflects aggregate status of all current LCs with links to in-depth reports and transaction logs.
• Status Reports: Provides quick access to pending, banked, paid and expired LCs.
• Transaction Log: Reveals timeline of events with links to actual LC document images and sets.
What does the Document Management Service include?
The QL/C Document Management Services focuses on getting exporters paid quickly and providing up-to-date reporting.
LC Credit Review: Our experienced staff reviews all LC’s for any potential problems i.e. inherent discrepancies, unusual document requests, short presentation periods etc. The exporter is advised of these possible “show stoppers” before shipment, thus ensuring that payments are not delayed due to discrepancies.
Expert Document Preparation: Documentation specialists will prepare compliant document sets in a fraction of the time as spent by in-house resources or freight forwarders and at considerably less expense!
Real-Time Web Reporting: Web reports provide tools needed to help manage and track export LC activity, as well as creating customized reports to suit the exporters’ needs.
What does the Document Management Service cost?
- Document Preparation – $145 per drawing (Volume discounts are available)
- Ancillary Fees (if required by LC Instructions)
- Consulate, Legalization and Notary – at service cost plus courier
- Courier to Domestic restricted Bank – $10.00
- International Courier – at service cost
- International faxes – $10.00/1st page, $3.00/2+ $30 maximum
- Telex – $25.00/telex
- International mailings – $17.50/registered; $10.00 airmail
Pledges & Restrictions
- All services are assured from receipt of invoice and transportation documents (Legalized & 3rd Party Documents excepted).
- All LC document sets are couriered.
- All LC’s are bank reviewed prior to submission.
- All Discrepancy Fees (except passed deadlines) will be paid by QL/C.
- QL/C Liability is limited to Discrepancy Costs and interest lost up to $500.00 per LC.
Which advantages offers the QL/C Document Management Service?
- Obtaining rapid payment for an international export shipment requires seasoned and trusted experts. With a highly skilled staff of documents specialists, QL/C’s sole focus is producing results for exporters.
- Export advocates: The QL/C team continuously evaluates customer needs and determines the best strategies to meet those needs.
- International experience: QL/C works with every major bank and freight forwarder in the world. QL/C’s multi-lingual staff has amassed unparalleled experience to address virtually any problem that can arise during an export payment situation and can quickly resolve issues with an exporter’s best interests at the forefront of every resolution. QL/C’s worldwide relationships help speed the entire LC payment process.
Other advantages: The hardworking QL/C team:
- Promises and assures a successful outcome for clients.
- Saves clients time and money.
- Consistently improves processes and builds upon existing skills.
- Provides efficient, consistent and accurate production of banking documentation.
- Avoids costly collection delays, punitive fees, unnecessary added paperwork and lost productivity.
- Minimizes complications and significantly speeds export collections.
- Impacts exporters’ bottom lines by shortening collection cycles.
- Boosts liquidity management and working capital position.
- Reduces the borrowing cost of capital.
Can I get references?
QL/C will provide references upon request. Naturally, we hold our clients confidentiality in the highest regard and therefore only provide contacts information with their permission and when they know to whom it is being given.
What should I do to get started with the QL/C Document Management Services?
If you currently have a Letter of Credit (or are expecting one), you can call us today and we will work with you to start the Document Management Service process.
The following workflow description is provided so that you can understand what to expect from QL/C.
1. LC received by Exporter
2. Fax copy to QL/C at (650) 631 5501 for compliance review.
3. Credit Review Worksheet (CRWS) are available and will be faxed back with appropriate comments.
4. QL/C contacts nominated Freight Forwarder with AWB/OBL compliance instructions.
5. When goods are shipped to Freight Forwarder.
6. Send Commercial Invoices and Packing List to Freight Forwarder.
7. Instruct Freight Forwarder to fax copy of AWB/OBL ASAP to QL/C.
8. Fax last page (showing total) of Commercial Invoice and Packing List to QL/C.
9. QL/C prepares all needed documents for banking presentation within 24-36 hours of Transport document receipt.