Letters of Credit

Reduce risk when you buy and sell merchandise around the world. If your business operates in the export/import sector, the Belize Bank can provide you with Letter of Credit (L/Cs) to guarantee your supplier that payment will be received, in turn speeding up overseas shipments and payments.

Commercial Import Letters of Credit
If you’re an importer, timely receipt of goods is a basic component of doing business. An Import Letter of Credit assures that you’ll only be required to pay for merchandise when the seller meets the terms of the LC. Use an Import Letter of Credit to:
• Increase the likelihood that you’ll receive the correct quantity of the right product at the right location
• Increase the probability of timely receipt and/or delivery of the product

Commercial Export Letters of Credit
If you’re an exporter, one of the issues you’ll need to consider is how to collect payment from a buyer. An Export Letter of Credit increases the possibility that you will receive payment in accordance with the terms of your sales agreement. Use an Export Letter of Credit to:
• Receive conditional assurance of prompt payment for shipped goods
• Receive conditional protection again the buyer’s rejection of the merchandise

Standby Letters of Credit
As a business owner you’ll find that there are times when your service providers or suppliers require more than your good name to ensure payment to them. A Standby Letter of Credit assures your suppliers that you’ll fulfill the terms of your contract or agreement. Large and small companies across many industries use Standby Letters of Credit to:
• Increase the possibility of timely invoice payment in trade transactions
• Increase the likelihood that a buyer will continue to make incremental payments during a project or transaction.