This is provided only as an overview in which I use Local Bank as the bank nearest the shipper, and Destination Bank as the bank in the consignees’ country.
Put into very basic terms, a letter of credit is a method of guaranteeing that the shipper gets paid, and the purchaser gets a shipment – or at least, this is what the intent is all about. The reality is not always quite so well defined. The letter of credit is only a good method of providing payment for freight – it is not a solid guarantee of receiving full payment, or that what was ordered is what gets shipped.
Download the Letter of Credit.
After more than 15 years of experience providing transportation services, our CEO and founder, Isaac Adepoju, started Divine Peace Special Transportation Services, LLC because he believes every person should receive excellent care that suits his or her needs. We work hard to ensure you arrive at your destination quickly and in comfort, giving you one less thing to worry about.