Letter of Credit Financing

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Letter of Credit Financing

A Documentary Letter of Credit (DLC) has become an important method for overseas customers to pay for vehicles and other goods. A Documentary Letter of Credit is also, unfortunately, one of the most challenging ways to receive payments as the documentation requirements and procedures can be very complicated.

Techlantic’s business model has evolved to export facilitation and partnering with other exporters. Our business focus now is to help our local Canadian and US customers thrive in the business of exporting by leveraging our knowledge and financial capabilities related to Documentary Letters of Credit.

Process

Techlantic has grown as a trusted long term partner to many importers and exporters by focusing on customer service and adaptability. The following suggested process is used most commonly as it ensures that no credit checks are required and everyone gets “Approved”!

Deliver the vehicle or other goods to our storage facility and Techlantic will pay you immediately for the goods, including local taxes, if applicable.

Instruct the end customer overseas to initiate a letter of credit, with Techlantic as Beneficiary, for the goods for any desired amount that meets the import requirements for the goods. The balance, including Techlantic’s handling fee and shipping cost can be paid by wire transfer.

Techlantic will complete required documentation to receive payment by the Letter of Credit.

Requirements

Letter of Credit Requirements

Techlantic maintains a detailed list of requirements that is shared with you at the time of a transaction. The following basic requirements can be used in preparation for working with us for the first time.

As the vehicle or other goods are being prepared for shipping, a Letter of Credit should be prepared meeting the following requirements:

Beneficiary should be “Techlantic Ltd.”
Issued by a well-known bank
Should be received 4 days prior to shipping by our bank (Royal Bank)
Date and place of expiry should be a minimum of 3 months after the date of issue
Partial shipments must be allowed if multiple vehicles are on the Letter of Credit
The last 6 digits of the VIN should be included in line 72 “Sender to Receiver Information”

If you would like to see our current detailed list of requirements, please contact us below.

Payment Calculation

The image below is a sample payment calculation. We are happy to put together a detailed specific payment calculation for you for a specific vehicle or shipment of goods at any time.