International trade is developing on a rapid scale in the import and export business. Trade finance is playing a crucial role in helping people in different countries to do business with each other. Financial institutions provide security while conducting cross-border business. Whether you need a guarantee to be paid after receiving the goods or a Letter Of Credit to buy goods from one country and importing them to another country, MCG is there to deal with all such types of business requirements by providing a Letter of Credit, Standby Letter Of Credit, Performance Guarantees, proof of funds documents, and bank guarantees. Merchant Credit and Guarantee Corporation Ltd. provides you assistance in collecting and combining information to access the trade credit services required.
International traders use two legal bank documents known as “Letter of Credit” and “Standby Letter of Credit” for trade. Letter of Credit is issued by a bank guaranteeing that the seller will receive the payment from the buyer on time and with the correct amount. If the buyer is not able to make a payment the bank covers the full or the remaining amount of the goods purchased. The use of a Letter Of Credit has become a very essential aspect of international trade due to the factors such as distance, different laws in different countries, and difficulty in understanding both parties personally. A Standby Letter Of Credit is different from a letter of credit. In this the bank guarantees on behalf of the client ensuring that the payment will be made even if the buyer cannot fulfill the payment. Letter of Credit is a primary payment method in international trade which means that you can ask for the payment from the buyer for the goods that are directly purchased by opening a letter of credit whereas SLOC is the secondary payment method which means they act as a guarantee and will be utilized in case the other primary payment methods doesn’t work.
An agreement that guarantees that the contractor will work according to the terms and conditions written in the contract and complete the project undertaken is called Performance Guarantees. It is a legal bond used to secure the obligations of the contract. It is issued by the bank or insurance company to the employer in the name of the contractor to guarantee the full work by the contractor as discussed and depicted in contract data. It gives them the confidence to the employer that they will have their contracts completed while meeting their expected deadlines. The client is guaranteed compensation for any monetary losses to the amount specified in the performance bond if the contractor fails in completing the task.
MCG helps to make you feel safe and secure by providing all the trade finance tools required for international trade!!!
For more information visit our website: https://merchantcreditcorp.co/
Merchant Credit and Guarantee Corporation Limited (MCG)
Phone: +64 9 5244269
Email: info@merchantcreditcorp.co
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