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Gilts
Bonds
TRADE FINANCE
West Capital Markets arrange Letter of Credit instruments for client businesses.
West Capital Markets can assist with any company's international
trade finance needs by handling the entire Letter of credit process.
WestCap Inc. can assist you open Letters
of credit to fulfil inventory financing needs for large and small purchase orders through our purchase order financing
scheme, and to provide an enhancement to current banking arrangements.
Our expert staff can work with clients to arrange
their transfer Letter
of Credit, performance guarantee requirements, cash against document requests and other such trade instruments by using
our extensive global banking facilities.
West Capital Markets
facilitates and manages the process of the opening of Letters of credit on behalf of its clientele, and continues the ongoing
management of the letter of credit process throughout the period for which a transaction may occur.
Due to the flexibility of the company, a specific collateral deposit is NOT required,
and WESTCAP does not necessarily become a creditor to its clients’ companies. WESTCAP provides
an augment to the banking or landing facilities which may be currently provided by other institutions.
The services offered by West Capital Markets have
facilitated excellent relationships in which world banking institutions work in conjunction with WestCap’s expert staff, the company avails
itself of the foremost experts in the World of Trade Finance, and the criteria set forth under UCP 600 for documentary LC’s
and ISP98 for standby letter of credit or bank guarantees.
These
alliances are utilised to create opportunities for growth and profitability for our clients' companies.
Understanding and Using Letters of Credit:
Letters
of credit accomplish their purpose by substituting the credit of the bank for that of the customer, for the purpose of facilitating
trade. There are basically two types: commercial and standby. The commercial letter of credit is the primary payment mechanism
for a transaction, whereas the standby letter of credit is a secondary payment mechanism.
Commercial
Letter of Credit:
Commercial letters of credit have been used for centuries to facilitate
payment in international trade. Their use will continue to increase as the global economy evolves.
Letters
of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice
for Documentary Credits. The general provisions and definitions of the International Chamber of Commerce are binding on all
parties. Domestic collections in the United States are governed by the Uniform Commercial Code.
A
commercial letter of credit is a contractual agreement between a bank, known as the issuing bank, on behalf of one of its
customers, authorizing another bank, known as the advising or confirming bank, to make payment to the beneficiary. The issuing
bank, on the request of its customer, opens the letter of credit. The issuing bank makes a commitment to honor drawings made
under the credit. The beneficiary is normally the provider of goods and/or services. Essentially, the issuing bank replaces
the bank's customer as the payee.
Elements of a Letter of Credit
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