ETC’s Import Letter of Credit is a financing solution designed to secure and facilitate the commercial transactions of African importers. This service ensures that the importer will only pay for the goods once the supplier has proven that they have been shipped.
In the context of trade with and within Africa, payment security and trust between trading partners are essential. In the L/C Confirmation, ETC, acting as the confirming institution, adds its commitment to that of the African issuing bank on behalf of the foreign exporting beneficiary. This helps overcome challenges related to the specific risks of African economies, facilitates international trade, and reduces financial risks for exporters and importers.
The Import Letter of Credit is an irrevocable commitment issued by ETC as a Non-Banking Financial Institution, guaranteeing that the seller (exporter) will receive payment, provided the documents presented meet the specified terms and conditions. It ensures the security of commercial transactions by confirming that payment will be made once the contractual conditions are met.
