If an unseen development prevents the contract from being fulfilled, First Commonwealth Bank guarantees payment, thereby eliminating the risk to the third party. Standby letters of credit guarantee contractual obligations for a third party. If you are looking to import or export goods, a documentary letter of credit may be required. For new supplier relationships, a documentary letter of credit mitigates the risk of shipping inventory to or from another country to a vendor you aren’t fully established with yet. The letter ensures payment provided that the terms and conditions of the credit have been met. Documentary Letters of Creditĭocumentary letters of credit are typically involved in international commercial transactions. The two primary types of letters of credit are documentary letters of credit and standby letters of credit. The letter promises the beneficiary that First Commonwealth Bank will assume responsibility for a debt or sale given all conditions within the letter are met. Retirement Plan Administration and ConsultingĪ Letter of Credit is a bank’s guarantee for payment, up to a set amount.Treasury Management Solutions Main Page.
Business Online and Mobile Banking Main Page.Investment & Brokerage Services Main Page.Savings and Money Market Accounts Main Page.In order to enable your company to enjoy ICBC's convenient and fast export L/C business, we recommend your company to request importers and issuing banks to designate ICBC (USA) as the advising bank of L/C.
ICBC (USA) will appoint experienced international trade experts to provide you with professional guidance of banking services, such as bill advisory and document pre-examination, and lay a solid foundation for your smooth receipt of payment for goods after they have been shipped out.Įxporters not having a long term relationship with the counterparties, thus needing the commitment of a Bank in a business transaction. Therefore, your business will be handled in a more standardized, efficient and accurate way if your counterparties are also clients of ICBC's, thus business handling costs can be minimized. ICBC (USA) will make concerted efforts to conduct business cooperation with other domestic and foreign branches. After the exporter have shipped the goods and presented the documents at our counter, ICBC (USA) examines the documents and sends them to the Issuing Bank and claims the payment.Īll domestic and foreign branches of ICBC have achieved an integrated management of international settlement business. Upon receipt of the L/C from the Issuing Bank, ICBC (USA) checks the L/C and advises it to the exporter. Importers with trade financing needs such as import trust receipt financing. Importers who have chosen L/C as their settlement method, especially suitable when counterparties are also clients of ICBC’s Ģ. Therefore, your business will be handled in a more standardized, efficient and accurate way if your counterparties are also clients of ICBC's, thus your business handling costs can be minimized.ġ.
Upon receipt of the full set of documents from the exporter's bank and after having verified their consistency with the L/C, ICBC (USA) shall make prompt acceptance or payment to exporters or designees by exporters.Īll domestic and foreign branches of ICBC have achieved an integrated management of international settlement business. The L/C will be issued to exporters based on your company's application. Your company can choose ICBC (USA) for the import L/C business when you agree on settling the trade payment by L/C with exporters.