a lc is an instrument which protects both parties from risk by involving an intermediary (the bank).
1)assuming you have a corporate account, call your bank or your account manager and ask him what your options are. lc payments can frequently be avoided by negotiating with the suppliers/clients for mutually agreeable payment terms such as 50% upfront and 50% pre delivery.
2)you can also ask your bank for merely a 'payment guarantee' which mentions the amount and validity of the guarantee. This works just like a tender/performance bond and is only charged a commission as opposed to monthly interest on lc payments.
3) we don't know your exact situation so get in touch with your bank. if you don't have a corporate relationship manager who deals with your account; well get one. It is imperative for smooth banking activities and can be very helpful in times of need like these.
best of luck:-)
a lc is an instrument which protects both parties from risk by involving an intermediary (the bank).
1)assuming you have a corporate account, call your bank or your account manager and ask him what your options are. lc payments can frequently be avoided by negotiating with the suppliers/clients for mutually agreeable payment terms such as 50% upfront and 50% pre delivery.
2)you can also ask your bank for merely a 'payment guarantee' which mentions the amount and validity of the guarantee. This works just like a tender/performance bond and is only charged a commission as opposed to monthly interest on lc payments.
3) we don't know your exact situation so get in touch with your bank. if you don't have a corporate relationship manager who deals with your account; well get one. It is imperative for smooth banking activities and can be very helpful in times of need like these.
best of luck:-)