Letters of Credit

Do You...

Engage in import/export transactions?
Want to minimize your risks in international trade?
Require greater control over shipping dates and receipt of documents for your imports?
...then consider Documentary Letter of Credit Services from CIBC Trade Finance.

What Are Documentary Letters Of Credit?

Import Letters of Credit

You can use Import Letters of Credit to provide your suppliers with CIBC's undertaking that they will receive payment upon delivery of documents specified in the Letter of Credit within a stipulated time. To you, as an importer, using a letter of credit reduces the risk of having to pay in advance for goods or pay for anything when the documents presented by the exporter are not consistent with the terms of the Letter of Credit.

Export Letters of Credit

The Export Letter of Credit provides you with your buyer's bank undertaking that you will be paid, provided you ship the goods and present the documents specified in the Letter of Credit within a stipulated time. This reduces payment risk to you, the exporter.

Complementary Product

CommLinc LC™ and Global Trade Information™, or Trade Workstation™

CommLinc LC / Global Trade Information and Trade Workstation are CIBC Trade Finance's automated Import Letter of Credit initiation and tracking systems that are directly linked to CIBC's Import Letter of Credit processing centre. They provide you with a simplified way to prepare, submit and monitor your Letter of Credit transactions using your own computer.

Key Benefits

Saves You Money

With CIBC Trade Finance's Letters of Credit as security for payment, your suppliers would not insist that shipments be secured by cash in advance
Using CIBC Trade Finance's automated systems for initiating and tracking Import Letters of Credit may help you to increase the overall efficiency of communications with CIBC and your suppliers, eliminate some of the work involved around the initiation and tracking of Letters of Credit, as well as facilitate better record-keeping
You may obtain better pricing for your imports if your suppliers are assured of payment by a Letter of Credit issued by CIBC

Makes You Money

It may enable you (as an importer) to negotiate better prices with your suppliers, as payment to your suppliers is guaranteed by CIBC
Enables you (as an exporter) to request immediate payment under letter of credit drawings (provided that the documents are in order), thus improving cash flow

Saves You Time

Expedites transactions
CIBC Trade Finance issues the Import Letter of Credit, handles document checking and payment to the suppliers
CIBC Trade Finance tracks the transaction status of the Letter of Credit
Our electronic Letter of Credit platforms allow you (as an importer) to communicate directly with our processing centre to initiate Letters of Credit, thus reducing processing time Convenient
Our electronic Letter of Credit platforms provide current and accurate Letter of Credit information (e.g., account activity and summary of outstanding Letters of Credit)
Our electronic Letter of Credit platforms allow importers to transfer the information to reporting packages to create customized reports
Since Letters of Credit stipulate a latest shipment date and a latest period for presentation of shipping documents, importers have greater control over these terms
Assists importers/exporters in facilitating international trade

Please Note: Products and their features may change at any time. This is a general description only; for more information call the CIBC Trade Finance Help Desk at 1-800-268-6331.

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