Can I pay with a letter of credit (L/C)?
Yes, we accept a confirmed irrevocable L/C as payment. Your bank will transfer the amount when we can prove that the vehicles you have purchased have been shipped. This method offers you even greater security.
What is a letter of credit? (LC)The simple explanation is that a letter of credit is a promise to pay. A bank issues letters of credit as a way to ensure sellers that they will get paid as long as they do what they've agreed to do.
Why do you chose Letter of Credit as a payment method?The use of a letter of credit gives you certain advantages:
- Assurance that goods will be delivered when payment will be done and vice versa.
- Assurance that no payment will be made until the required documents are checked and agreed.
- The opportunity to have extended or stretched out payment terms and interest that match accordingly.
- The opportunity to have an arrangement in which a debt does not have to be repaid until sometime in the future. This is called deferred payment.
Which parties are all involved in the L / C.
- The applicant: The person who opens the credit. In this case, you, the buyer of a vehicle.
- The Issuing bank: The bank where the credit is opened and that promises to pay.
- The beneficiary: The seller or ultimate recipient of funds. In this case, us, where you buy the vehicle.
- The confirming and advising bank : The Rabobank, that checks and uses the letter of credit.