An Import Letter of Credit is a written document that replaces your credit with ours. The seller is authorized to obtain payment in accordance with certain terms and conditions. A Letter of Credit is one of the most common methods of facilitating international trade between buyers and sellers. It is the best way to put a supplier at ease and ensure you get exactly what you order.
A Letter of Credit is issued by the buyer’s bank, but it is designed to protect both the buyer and the seller. The benefits are:
- National Penn’s credit is substituted for your own.
- Your company is protected because National Penn Bank does not debit your account or make payment until all terms and conditions are met.
- Broader, more reliable supply sources can be developed.
While a Letter of Credit must meet stringent requirements, it is a flexible instrument and can be tailored to meet your particular needs.