What is a Letters of Credit? Make Sure You GET PAID!

[@brysonwilliams4578]

This was the best explanation on LCs ever. Love the British style of humor, it makes things more understandable. I would say everything was spot on.....

[@ABTS]

Thanks very much Bryson, very much appreciate the comment and hope the video helped you.

[@kudaisiaduntola2523]

I could listen to you all day long! Thanks for simplifying logistics for me!

[@ABTS]

Hi Kudaisi, thank you for your kind comment! I’m glad to hear our videos are helping you!

[@yacoubalkhder2424]

Very interesting, very informative and most important the nice way of explaining coupled with typical British sense of humour! In my life, I did about 400 Import/Export LCs, many of them were Back-to-Back LCs, which were not mentioned! We neither issued nor received any Transferable LC!

[@ABTS]

Glad you enjoyed it! You've obviously a lot of experience yourself which is great. I've not covered back-to-back and there are various others but hopefully it gives viewers the basics that they need to learn in more detail.

[@yacoubalkhder2424]

@ Thanks, by the way, I’m enjoying your other videos, about UCP600. INCOTERMS 2020 ant the one about shipping, they are all great. Well done 👍

[@bela8733]

Thank you for sharing this amazing content. I was looking for a complete explanation about LC, and I got it watching your video. Tks from Brazil.

[@ABTS]

Hi Isabela, thank you for your comment and I’m so glad to hear that it helped you!

[@kellyswanson7973]

This was so helpful. I’m trying to learn the basics of LCs for my bank job and your explanations and examples are wonderful. Thank you!

[@ABTS]

Glad to hear the video helped you Kelly and best of luck.

[@moobahornby1596]

Very simplified explanation of LC.

[@ABTS]

Thank you, I hope it helped you.

[@NotLC123]

Can holders of trusts provide LC’s? Like intermediaries?

[@ABTS]

Hello, anybody who has the funds, can open a letter of credit however I would have to know more details about the trust itself (such as who holds the trust etc).

[@NotLC123]

@@ABTSwould be a securities account and the holder is the department of finance (Canada) Acting as securities intermediary.

[@ABTS]

In my understanding, a security account, is a means by which you can invest. It’s not usual to raise a letter of credit from such an account. However it would be something to discuss with your bank as far as the mechanics of it.

[@eurekapinas]

Thank U for having a patience of doing a very informative videos. Learn alot from U

[@ABTS]

Thank you very much for you kind comment. I’m so glad to hear our videos have helped you.

[@dailytaketalkshow]

you just got a new steady subscriber. amazing humor

[@ABTS]

I’m glad you like our videos! Thanks for the comment.

[@JoeyJamie]

When you say you transferred the letter of credit 12 times, do you mean the whole credit or 12 parts total??

[@ABTS]

Hi Joey, I used the letter of credit to pay 12 different suppliers, I broke it up. Hope that helps?

[@katflagler3866]

Brilliant 😊

[@ABTS]

Thank you Kat, glad the video helped.

[@redrosin99]

Thank you for your words of wisdom!

[@ABTS]

My pleasure and thank you for your kind comment.

[@David-MichaelSkerl]

very helpful, thank you! this works under ucc conditions- such as conditional acceptance or accepted for value? dipping my toes in the water here!

[@ABTS]

Hi, I'm sorry, I don't understand the question. Can you elaborate?

[@estebanmaldonado1395]

Thanks a lot for your advices, greatly accepted and appreciated

[@ABTS]

Hi Ramon, you’re very welcome I’m glad the video helped you.

[@sycamore665]

Who pay the percentage on the confirmed letter of credit, the importer or the importer?

[@ABTS]

Hello, as a general rule, the importer pays the issuing bank to establish the letter of credit and the exporter pays the advising banks' fee.

[@sjgonzalo8]

Hello, would you share the link or the source of the LC statistics in the UK?

[@ABTS]

Hi Gonzalo, the source of the stars was “SITPRO”. SITPRO was a UK non-departmental public body that focused on the removal of barriers to international trade through the simplification and harmonisation of trade procedures but no longer exists unfortunately.

[@bocean07]

What about a letter of credit from my corporate entity all Caps name? To another company?

[@ABTS]

Sorry, I don’t understand the question. Can you expand?

[@sarmand7144]

Fantastic thank you! One clarification please. Do you, the middleman, ask for a transferable LC or does the end buyer ask for it, provides it to you so you can transfer it to the supplier?

[@ABTS]

Hi Sarmand7, thanks for your comment. It is the Seller (middleman) who would request a Transferable Letter of Credit from the Buyer. The middleman then uses the funds on the Transferable Letter of Credit to purchase from the supplier. For example, if the sellers' price is £200, the middleman would ask the buyer for £300 as a Transferable Letter of Credit from the buyer. They would then transfer £200 to the seller and the balance (£100) would be profit for the middleman. Hope that helps and hope that makes sense.

[@saimak7079]

Loving your videos

[@ABTS]

Glad to hear they are helping you Sai! Appreciate the comment

[@saimak7079]

I don't suppose you have any training export ocean freight-forwarding material for purchase, or for free!?

[@ABTS]

@@saimak7079 Hi Sai, two videos may help you here: kzbin.info/www/bejne/aXPLaWaifqabrLs kzbin.info/www/bejne/m4nVgnijf7uNoLc We do also have a paid Export Documentation and Procedure course that will teach you the practical knowledge you need to know: www.abtslogistics.co.uk/full-syllabus/ Please let me know if you need anything else.

[@saimak7079]

@@ABTS Many thanks!

[@iliadalu4656]

I love this thank you so much 🥰

[@ABTS]

Thank you for your comment, I’m so glad to hear it helped.

[@philpaule472]

What a great video explaining LOC's

[@ABTS]

Thank you Phil, I’m so glad it helped you!

[@thanhluong821]

thank you for the wonderful video

[@ABTS]

You are very welcome indeed Thanh, I’m so glad to hear it helped you.

[@sistersoldier3063]

Fabulous delightful insightful a blessing you have just created a new door in my world one to which I’m ecstatic to open!

[@ABTS]

Hello, I'm so happy to read your comment and it's great to have opened the door to international trade for you. I hope you enjoy our other videos and please see our blog also: www.abtslogistics.co.uk/blog. Lot's of free, practical knowledge there too. All the best.

[@ffarag]

Good day Sir, I would love to learn from your expertise and knowledge, and willing to pay you for that, I have some how complicated LC issue, I think you would be able to help me. how to get to you, Sir?

[@ABTS]

Sure, no problem at all. Please find our contact details here: www.abtslogistics.co.uk/contact-us/. If you would like to send an email with some background to your issue, we can go from there. Thank you.

[@hungrylearner8137]

Thank you

[@ABTS]

You’re very welcome! I hope it helped.

[@leehant]

This is gold.

[@ABTS]

Thank you and I’m glad it helped!

[@missburnett3350]

Do you have to pay back a letter of credit?

[@ABTS]

Hi missburnett, a letter or credit is not actually “credit”. In order to setup a letter of credit you will have to prove that you have funds available and they will be used to generate the letter of credit in the first instance. I hope that makes sense but in short, you have to have the funds at the start.

[@arelspatushi2450]

Im still a bit confused, ive been looking to do a bill of exchange and now letters of credit… but where exactly are the funds coming out of in a letter of credit?

[@ABTS]

Hi Arels, the funds are coming from the opener of the letter of credit, or “the buyer”. The bank issues the letter of credit using these available funds. So if you wanted to buy goods using a letter of credit for £100,000 you would have the have that £100,000 in cleared funds in your bank account. Hope this helps?

[@Visionarythought1675]

Based on your knowledge, can you use your Certificate of Live Birth as a Letter of Credit?

[@ABTS]

I’ve not heard of a certificate of live birth, I’m not sure what you mean?

[@Visionarythought1675]

@ It's a birth certificate. Some people in the US are teaching that you can use a Birth Certificate as a Letter of Credit.

[@ABTS]

@@Visionarythought1675 Hi Kenneth, that's not possible. I can't imagine anyone teaching that. A birth certificate and letter of credit have absolutely nothing to do with each other. In simple terms, no bank would give you any type loan, letter of credit or otherwise with your collateral being your birth certificate 🤣.

[@Visionarythought1675]

@@ABTS Thank you for the clarification as well as your timely response. I've enjoyed listening to your videos.

[@ABTS]

@@Visionarythought1675 Happy to help and I'm glad to hear our videos are helpful for you.

[@khalilrehman5771]

Wonderfully explained. İ would love you to be my mentor in my career of international import & export agent if only i had the the fee of enrollment in your courses. Following and listening from Pakistan.

[@ABTS]

Thank you so much Khalil, I appreciate the comment. Please contact us and we will do what we can to help: www.abtslogistics.co.uk/contact-us/

[@ronrouyer2069]

I'm told the military DD214 endorsed is a letter of credit. Comments?

[@ABTS]

Hello, I'm not familiar with this and haven't heard of a DD214 in terms of import export and/or a letter of credit.

[@Lobos222]

Wrong, the credit aspects in a DD214 is not related to the banking aspects of UCP600 or ISP1998 Letter of Credit. However, if I might speculate. A DD214, in context of international transport of a dead body for a funeral, might be a document mentioned in an LC. Note, that many freight laws often specifically mention they do not deal with transport of dead bodies, animals alive or dead, "household goods" or "personal effects". So there might be other aspects to such transport.

[@Pagan-hn4du]

Robots&patriots on KZbin

[@jacwats1]

WHAT IS THE COST FOR A 1,200,000.00 LETTER OF CREDIT?

[@ABTS]

Hello, it's hard to give you specific costs because much of the cost will come down to how well you can negotiate with your bank. Even though banks have a published cost for an LOC, you should always negotiate a better deal. There's too many variables involved to give you an exact cost.

[@frankfrisco2667]

Can I have your contact information?

[@ABTS]

Sure, please find our contact details here: www.abtslogistics.co.uk/contact-us/