International accounts receivable
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China [CN] International L / C Financing
What is a letter of credit（L/C）and How can I pay
for orders by way of L/C?
A letter
of credit is a document issued by a bank to guarantee that a buyer will pay the
correct amount of money to a seller on time. It can be thought of as a cash
advance (undertaking). When the supplier sends documents proving the goodswere
supplied as described in the L/C, the bank either pays supplier immediately (known
as sight letter of credit) or on a future date after delivery documents are
presented (known as usance L/C). The buyer then pays on an agreed date. If the
buyer fails to make the full payment, the bank is requires to pay the balance.
For
foreign trade orders with long payment period from overseas buyers, Jiangsu
Hengyun launched L / C financing service, which can collect money in advance
after presentation of documents, accelerate capital turnover, operate on the
whole line, and make loans rapidly. A single business can be up to 90% of the
amount of financing invoice, and advance payment funds to the account within 3
working days.
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