Paying by Letter of Credit (LC)
For larger or first-time export orders, a Letter of Credit gives both sides a bank-backed guarantee instead of relying purely on trust. Here’s how it works in practice for a thermal paper or label order.
What an LC actually does
A Letter of Credit is issued by your bank and guarantees payment to us once we present the documents specified in the LC (typically commercial invoice, packing list, and bill of lading) proving the goods have been shipped as agreed. This protects you because payment is only released against proof of shipment, and it protects us because payment is bank-guaranteed rather than dependent on your creditworthiness alone.
When LC makes sense
✓ Larger orders where both sides want more security than open account terms
✓ First-time trading relationships without an established payment history
✓ Destinations where your bank requires LC for outbound trade finance regulatory reasons
✓ Buyers who want the payment terms documented and bank-verified rather than informal
What to confirm before opening an LC
Before your bank issues the LC, confirm the exact product specification, quantity, unit price, Incoterm (FOB/CFR/CIF) and shipment timeline with us in writing — discrepancies between the LC terms and the actual order are the most common cause of delayed payment release. Send us a draft of the LC terms before final issuance if possible, so we can flag anything that doesn’t match the agreed order.