Commercial Letters of Credit
Reduce your risks when doing business internationally
Commercial Letters of Credit are designed to ensure that payments to or from overseas sources are transmitted and received on a proper and timely basis, so that both the buying and selling parties are mutually satisfied.
Procedures you need to know about
Typical conditions
Conditions typically involve the presentation of documents showing shipment has been made (i.e., negotiable bills of lading), insurance documentation, invoices and inspection certificates.
Two forms of payment
Sight payments demand immediate disbursement when the required documents are presented, examined and approved. Time payments delay payment until a future date following document approval and release.
Specific details
Commercial letters of credit also specify details on the purchase or sale of goods including price, required shipping documents, payment terms, shipping terms, time frames and other transaction details contained in the underlying contract.
Import letter of credit
The issuing bank substitutes its credit standing for yours or that of your business resulting in enhanced purchasing power, reducing the seller's risk and improving cash flow.
Export letter of credit
The foreign bank substitutes its credit standing for that of your buyer, reducing your risk and improving cash flow.
What can we do?
Ally Private Wealth can make your overseas transactions easier and more efficient.
Letter of credit forms
Application Agreement
Commercial (Import) Letter of Credit Application (PDF)
Amendment Request
Letter of Credit Amendment Request (PDF)
Amendment Instructions
Letter of Credit Amendment Request Instructions (PDF)
Manage your business on the go
Manage your accounts from anywhere
Send and transfer money using ACH and wires
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Manage your business on the go
Manage your accounts from anywhere
Manage your business on the go
Send and transfer money using ACH and wires
Manage your business on the go
Receive account and security alerts
