ƒ Why do I need to pay your fee before you open the letter of credit? Can’t you take your fee out of the profits of our transaction?
We do not participate in the transactions of our clients as a party to the transaction other than providing the letter of credit. Our fees are the same regardless of the profit margin in the transaction.
ƒ Can I cancel my letter of credit after it has been opened?
All of the instruments that we issue are irrevocable and cannot be canceled except by the beneficiary.
ƒ What is the required cost to open a letter of credit?
We require an amount equal to ___% of the face value although in some instances the required amount may increase due to the amount of risk involved. When a client wishes to open a letter of credit, they are to present the details of the transaction so that our institutional relationships may make an informed decision based on the transactions and its merit.
ƒ What is the maximum size letter of credit that you open?
We are able to open letters of credit of almost any size. We consider the complexity of the transaction such as the product that is being traded as well as other factors having to do with the parties involved and where they take place.
ƒ For what type of goods do you open letters of credit?
We can open letters of credit for any type of goods provided they fall into our ethical and legal criteria. That said, we will not get involved in transactions involving weaponry or ammunition under any circumstances.
ƒ I opened a letter of credit to my supplier, but he did not ship the goods. Will you refund my fee?
Once the letter of credit is opened your fee cannot be refunded. We recommend to all of our clients that they need to assure themselves of their suppliers’ ability to perform before opening any banking instruments to them.