Bank Wired Transfers Letter of Credit

[diycasper]

Is this a safe way of sending money, Does anyone know any good companies for sending money this way & what sort of fees can I expect to pay? A letter of credit I assume is where I go to my local bank & ask them to send someone a letter confirming that they will pay someone the agreed sum for goods or services, am I correct?

[kjn2]

Letter of Credit ; when the buyers bank issue a letter of credit to the sellers via the sellers bank informing them that they will pay the funds to the sellers bank upon receipt of certain documents that will be stipulated by the buyer, if the documents are received within the time and are o.k the buyers bank will pay the sellers bank (Buyer will deposit funds with their bank before transaction effected, (very safe way of doing business (costly though).Usual docs requested, invoice, proof of despatch, insurance document, Form to confirm o.k. to export goods.Hope this helps.