Receiving A Letter Of Credit

Here is a partial list of questions you need to ask once you have received a letter of credit.

• Is the letter of credit irrevocable?
• Is the letter of credit at sight?
• Do you trust the Paying Bank?
• Can you convert the currency to your currency?
• Are the value and quantities correct?
• Are the shipping terms correct?
• Can you provide the required documents?
• Are the letter of credit fees as you had agreed?
• Is the merchandise correctly described?
• Is there sufficient time to meet the shipping date and expiration date?
• Are the shipping terms correct?
• Specify which documents that are required for payment.

Do not ship the goods if you are unable or unwilling to meet all the conditions stated in the letter of credit.

• Request an amendment to the letter of credit.