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Internet eLC technology

"Using online Internet Electronic Letters of Credit can mean shortening the length from sales negotiation to arrival of goods"

The letter of credit is a banking mechanism that allows importers and exporters to offer secure transaction terms to each other.

The letter of credit mechanism has been around for a few hundred years and is widely accepted as a standard, proven and widely used system world wide for buyers and sellers.

However, under the current manual system, a lot of time and manpower is needed to process a whole range of documents, like invoice, bill of lading etc.

In addition, these documents are duplicated several times and handed out to all parties involved in the transaction.

There is a lot of paperwork to check these documents and the process is time consuming and prone to error.

 


Site Contents for:
How to Get Payment
for Exporting?

Page 1/4
Get Paid for exporting. "There is no point in a firm exporting its goods, if it does not get paid for them."

Page 2/4 "The only reason that the bank's collection services are needed is because the exporter does not trust the foreign importer."

Page 3/4 Letters of Credit Collection Procedures "steps involved in collecting an exporter's money"

<<This Page 4/4 Online Internet Electronic Letters of Credit

 
 

Understanding Electronic Letters of Credit

What is electronic letter of credit?

Electronic letter of credit is a letter of credit transaction which is carried by electronic means of communication and issued according to the rules such as eUCP allowing electronic presentations.

The matching process between letters of credit (LCs) and corresponding documents, such as bills of lading and insurance cover notes can be carried out faster with v-Eyeballing (online) reducing the processing time and cost.

The new technology is able to perform about 95 to 98 per cent of the matching, the rest being subjective contents for manual viewing.

A normal LC transaction fee can cost up-to US$80, but with "Electronic Letters of Credit" the cost are as low as between US$8 to US$20 per transaction.

Usually, it takes between one and four hours to compare original documents, but with "Electronic Letters of Credit" technology, it can process and tracked in "Real Time" that allows logistics and insurance agency to submit documents electronically.

 
Using online LCs can mean shortening the length from sales negotiation to arrival of goods due to lesser paper processing and documents delivery time.

Electronic Letters of Credit facilities are available with most major international banks.

 

Page 1/4 Get Paid for exporting. "There is no point in a firm exporting its goods, if it does not get paid for them."

Page 2/4 "The only reason that the bank's collection services are needed is because the exporter does not trust the foreign importer."

Page 3/4 Letters of Credit Collection Procedures "steps involved in collecting an exporter's money"

This Page 4/4 New  Internet eLC technology

 


Site Contents for:
How to Get Payment for Exporting?

 


Site Contents for:
Secrets of
International Trade


 

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