When a buyer pays by letter of credit, the bank pays you only if the documents you present match the LC's terms exactly. Record the LC under Trade finance and link it to the order, so every document is checked against it.
Before production
Read the LC as soon as it arrives and mark it verified clean only when you can meet every term. An order paid by LC does not enter production until its LC is verified, because an amendment is much harder to obtain after the goods are made.
Dates to watch
- The latest shipment date: Expodite warns you as it approaches, and once it has passed the order stops until you obtain an amendment and override with a reason.
- The presentation deadline: documents not presented by then are late, and only the buyer can waive that.
- The expiry date of the LC itself.
Presenting documents
Expodite checks that every document the LC calls for is on the order, and that the LC's currency and goods description are recorded, so your documents repeat them exactly as the LC states them. Where the LC calls for a copy of a certificate you hold, the copy is added to the presentation pack. Record any discrepancy the bank raises, and its resolution.