Finance & Letter of Credit
Financial capability is particularly essential for companies in their first-time trade deals in purchase and sale agreements. The seller wants to know and trust the commercial history of the buyer, who is placing an order for the first time, while also aiming to minimize their risk and collect a significant portion of their costs before starting production.
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When a buyer places their first order with a manufacturer, they cannot be entirely certain that the product will be produced as agreed in the contract, and they want to reduce the risk of the product not being produced as desired. However, in response to the seller's demand for an advance payment, the buyer may often send the down payment without receiving a letter of guarantee, due to the banking practices and commercial customs in less developed countries where production is cheaper.
Do you want to buy products from abroad? Consult with us before making any payments.
Although letter of credit agreements appear to reduce risks for the buyer or seller in international trade, they may not be preferred in many countries due to commission rates, problems in the banking system, and insufficient credit limits. The development of the banking system and the increase of bankers' knowledge on letter of credit agreements can be beneficial for the development of international trade.
QANAQ provides international consultancy services on long or short term credits and letters of credit provided by international banks.
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In addition, we provide international consultancy services for long or short-term loans provided by international banks and the letter of credit agreement. Knowing that each purchase and sale relationship is different and that inter-country money transfers and credit guarantee systems are different, we provide our clients with services through our partners with professional banking backgrounds. Furthermore, we obtain the necessary documents on behalf of your company to close letter of credit agreements experiencing performance issues due to the inability to deliver products or services in a foreign country.
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If you require finance for your foreign trade transactions, contact us.
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Another area we provide services as QANAQ is to inform our clients in case of any disputes that may arise in the calculation of interest and other expenses in agreements made for foreign trade finance.