A Sovereign Bank-issued Import Letter of Credit guarantees payment to the seller only when the documents presented are in compliance with the terms of the Letter of Credit. In effect, you minimize your risk of paying for goods before you gain title to them.
A line of credit with Sovereign Bank is mandatory to have an L/C issued.
Benefits
- Protects the importer by effecting payment only upon compliance with the Letter of Credit terms
- Guarantees payment to the seller if in compliance
- Substitutes Sovereign Bank's credit for that of the buyer
- Provides the ability to buy in markets where credit is not yet established
- Governed by internationally-accepted rules
- Convenience of initiating Letters of Credit and amendments via the Internet through SovTrade®
- Real-time status reporting on transactions via the Internet through SovTrade® IQ
