Using a Letter of Credit is the internationally recognised practice for guaranteeing delivery and payment of overseas shipments. Separate from the purchase order itself, the Letter of Credit is proposed by the bank of the purchaser and sets out clear terms and conditions that must be met on delivery before the bank will release payment.
According to the UNCTAD and the ICC, at least 60% of commodity trading is conducted through Letters of Credit, and approximately 70% of documents presented are rejected on first presentation because of discrepancies. An estimated £113 million per annum are spent in UK alone in rectification of Letters of Credit, and non-compliance can result in refusal of delivery or payment.
At Doly & Co we follow the International Chamber of Commerce rules, and specialise in ensuring all documentation supporting the transaction is correct, from the Letter of Credit first draft right through to all documents required to comply with the credit terms therefore removing the risk of losses through discrepancy.
Doly & Co is committed to cutting ‘deadweight’ costs. We use our international trading experience to smoothly facilitate every transaction, and eliminate the uncertainty from international trading.
Deadweight costs arise from lost time and effort spent with less efficient brokers and intermediaries inexperienced in handling international transactions. Doly & Co already have the established infrastructure and proven business practices that allow us to avoid intermediaries chains by personally sourcing our customers’ requirements and supplying them directly.
We are here to provide assurances of maintaining honesty, integrity, reliability and legitimacy to any economic transaction. Our international trading experience coupled with our documentary credit expertise make us a highly sought-after partner. It is the reach of our network and the convenience of our methods that differentiates us in the market from our competitors.