Getting paid under a letter of credit requires some careful management to ensure all the terms are met. First of all the LC should be checked and the buyer asked to amend it if any of the terms cannot be met.
So once the LC is agreed, what can go wrong?
Here are some common examples.
- Documents required by the LC are missing.
- Documents required to be signed are not signed.
- The credit has expired or the documents are presented late.
- Descriptions of the goods on the invoice are different from those in the LC.
- Weights differ between various documents.
- Marks and Numbers differ between various documents.
- The shipment was short or late.
- Insurance cover does not begin on or before the date on the transport documents.
- The insurance risks are not those specified in the LC.
- Bill of Lading omissions or inconsistencies.
Most of these LC issues can be dealt with through careful management and our e-z Consign and GTA systems can provide you with the tools you need to do this.
- Workflow management can help you to make sure documents and goods arrive on time, and give other team members access to the status of any LC shipment in your absence.
- By keying data once and allowing it to cascade through all the documents, you can be sure that data will be consistent across all documents.
- Documents can be distributed electronically.
Our range of export document systems can provide you with whatever solution works for you from manual entry stand alone or fully integrated with your ERP system to help you manage your Letters of Credit and get all the documents right first time.