One of the most important international financial tools available is a Letter of Credit. Commercial Letters of Credit ensure speed, efficiency, and the mutual satisfaction of a purchase or sale.

At ICA, we have a variety of Letters of Credit to suit your needs:

• Commercial Letter – Issued on behalf of a merchandise buyer, this document authorizes the seller to draw drafts up to a stipulated amount and according to specified terms, and is classified as either Import Letters of Credit or Export Letters of Credit.
• Standby Letters of Credit – By issuing a Standby Letter of Credit, ICA provides customers with credit support when their credit standing is not yet established.

We provide import and export Letters of Credit in conjunction with other lending services to help companies increase sales or acquire products from overseas. For importers, we can arrange financing on inventory as soon as it is acquired. Exporters can borrow against their invoices as soon as the product ships.

A letter of credit from a major customer can be used as a form of security in establishing relationships with suppliers. For instance, if you're starting a manufacturing business, you could get a letter of credit from your biggest customer when the order is placed, showing that the customer has contracted to buy the finished product. The material to make the product is then purchased using the letter of credit as security...and you don't have to put up a penny to buy the material. If you would like to learn more about how ICA can assist you with a Letter of Credit, please contact us for a confidential evaluation.