Execution of Letters of Credit

In the world of international business, many shippers rely on letters of credit to guarantee payment from unknown entities. The letter itself, however, does not guarantee payment. It merely outlines credit terms and conditions of the transaction. If your documentation is not in compliance with the terms and conditions, you may have difficulty collecting on the shipment.

When selecting a freight forwarder, it is important to choose one which is trained and experienced in letters of credit. Cindy Kemper, a vice president at Elite, has spoken at many international business forums on the responsibilities freight forwarders have in the negotiation of letters of credit.

Elite will act on your behalf to review your letters of credit before you accept any terms, and will suggest modifications as necessary to ensure a smooth transaction. Each letter is then reviewed by two account representatives prior to presentation to the banking institution. The file remains open until we receive confirmation that the letter of credit has been paid.