What documentation is required for a letter of credit?
I have setup a new export business and very soon i will be sending my first export shipment of steel scrap to South East Asia. All my shipments will be guaranteed by letter of credit. Since i am new to exporting business i am not very familiar with export documentation, what general documents are required in an L/C. I know few of them like invoice, packing list but dont know how to complete them so that there is no discrepancy when documents are sent out.
Can someone on this forum please help me or guide me with L/C export documentation?
I hope you get an answer to your question shortly.
In the meantime, I recommend also looking at the Institute of Export and International Trade’s helpdesk for more specific advice:
The OTE team
Hope all is well with you this afternoon?
This blog may be of some assistance to you in answering your question: https://shippingandfreightresource.com/letter-of-credit/
We ourselves also have a wealth of information regarding freight and logistics on our website, which you may find of use. Please visit www.velta.co.uk
Also, if you would like a quotation on your shipment, then please do not hesitate to get in touch with us.
Good luck on the future of your business!
As you have suggested in the question there are risks of discrepancies and even non-payment if the paperwork is incorrect.
Being your first LC shipment you might wish to consider a third party taking on the burden of the paperwork and submission to the bank. I’m sure there are various suppliers for that service but one that we work with and find very capable is Business West:
If you want to deliver the LC yourself than perhaps consider undertaking a training course first from someone like Mark Hayward:
We have a little tool that can help you raise compliant export paperwork at www.4-exim.com if you wanted to do it yourself.
Hope this helps and best of luck with your export journey.