Common mistakes with Letters of Credit

Letters of Credit can be complex and exporters risk non-payment and additional costs if they do not meet the strict terms and conditions of the Letter of Credit or if they present the documents with errors to the bank.

We provide a checking service which you can use before presenting your documents to the bank. We will provide a report within 2 working days, outlining any amendments that need to be made.

Below are some of the common discrepancies our checkers come across:

• Inconsistencies with documentation- country of destination incorrect on the invoice, marks and numbers quoted differing on each document and conflicting issue dates on documentation
• Late shipping dates- if goods are shipped after the specified date or shipping period
• Insurance- not being able to see if the policy covers the particular shipment, insurance policy not complying with certain stipulations in the Letter of Credit
• Description of the goods differing on documents compared to the Letter of Credit
• Letter of Credit expired
• Late presentation of documentation to the bank
• Missing documentation

If you would like further information about Letters of Credit, book onto our free online taster session on 2^nd July at 10am, please register here.