Don't let a misfired "letter of credit" Keep you from delivering the goods
A recent client of ours was shipping truck parts and large tractor tires to Djibouti, East Africa. They had a letter of credit (LOC) that they showed to my international freight forwarding company after a freight quote was requested & after a firm booking was already in place with a carrier.
After thoroughly reviewing the conditions of the LOC we ran into a rather big problem - it didn't really agree with the freight quote we had already provided or the client's intentions for their shipment.
You see, they thought the LOC is as good as money in their pockets, but they did not take into account it undermining the outcome of their payment & the shipment altogether.Read More