Most car importers prefer to pay by Letter of Credit, shortly called L/c, instead of paying via bank remittance because of the safety concerns with regards to their payments, specially when the transaction amount is large or one is dealing with overseas party. Some clients choose this option because it is mandatory by the laws of their countries to import cars against letter of credit mode of payment, for instance, as is the case with Bangladesh or Sri Lanka.
Advantages for sellers
By asking for an appropriate letter of credit a seller is reassured that providing they ship the vehicle(s) and present documents in order and within an agreed timeframe they will receive their money in full and on time
A letter of credit is one of the most secure methods of payment for exporters as long as they meet all the terms and conditions
The risk of non-payment is transferred from the seller to the bank (or banks).
Advantages for buyers
When buyers use a letter of credit they get a guarantee that the seller will honour their side of the deal and provide documentary proof of this during the fixed period of time for which the L/c was opened. In case the time frame expires and shipment is not made, the buyer does not lose its money.
Despite these benefits, most car exporters in Japan do not prefer this mode of payment. Some do not have trust in the eyes of their banker for L/c to be accepted, others find the process time consuming and costly.
GAZOOBA prides itself by offering safe mode of payments. Being a JUMVEA member, we ask our clients to pay via Safe Trade but when the amount of transaction is extremely large, or where a client wants to purchase a large number of vehicles, or when they order one or more brand new vehicles, we gladly accept payment by Letter of Credit.
L/c must be drawn from a prime bank. If you wish to pay GAZOOBA by L/c, please first contact us so we discuss the L/c terms and conditions before you proceed to apply for an L/c.
You can Email us for further information about Letter of Credit payments. At GAZOOBA, we always listen to our clients' needs and we look forward to hear from you.