A document that demonstrates that a person has the ability and funds available to use for a business transaction. It usually comes in the form of a bank, security or custody statement. The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate. 
 
FCS can provide many products and services to assist you in your financial needs. We are a trusted Proof of Funds facilitator that has been relied on for several decades by many thriving businesses in the financial industry. Let us use our experience to help you! Our services incorporate a variety of needs, and include the following: 

  • Cash Management  - including Collection Services, Disbursement Services and International Payments. 
  • Trade Financing  - SBLC’s, LC’s and Bank Guarantees 
  • Financial Guarantees  – A simple application starts the process 
  • SWIFT Services  - Safely and securely completing your transactions  

All our products are securely cash backed and can be used for any of your proof of funds needs. Should your transactions require cash collateral, credit enhancement, balance sheet enhancement, or more, FCS can be your solution. 

Procedures:

At sight letter of credit procedure 

  1. Send us pro-forma invoice and/or sales contract. 
  2. We will create a draft instrument and quote you our charges. 
  3. Once you have accepted the draft, we will send you indemnity documents which needs to be signed and notarized by a lawyer. 
  4. We will send you invoice for our charges. 
  5. Once you have paid us, we will swift the instrument to the beneficiary’s bank immediately. 
  6. The beneficiary will send the goods to you and the documents to us. 
  7. Once documents have arrived, we have 5 business days to accept or reject the documents. We will send you a copy of the documents. 
  8. Upon acceptance of the documents, you will be required to pay the beneficiary. When completed, we will send you all the original documents. 
  9. Goods arrive. 

Usance (deferred) letter of credit with conditional acceptance procedure 

  1. Send us pro-forma invoice and/or sales contract. 
  2. We will create a draft instrument and quote you our charges. 
  3. Once you have accepted the draft, we will send you indemnity documents which needs to be signed and notarized by a lawyer. 
  4. We will send you invoice for our charges. Applicant will pay us along with a postdated check for the full amount of the instrument. 
  5. We will swift the instrument to the beneficiary’s bank immediately. Escrow account payable upon swifting of the instrument is acceptable. 
  6. The beneficiary will send the goods to you and the documents to us. 
  7. Once documents have arrived, we accept or reject the documents. We will send you a copy of the documents. 
  8. Goods arrive. 
  9. We will provide an acceptance note based on the terms and conditions of the LC along with all original shipping documents. 
  10.  You will pay the beneficiary according to the terms of the LC (Up to 2 years from shipment date) or allow us to cash the postdated check and pay the beneficiary directly. 

Standard letter of credit procedure 

  1. Send us the underlying relationship contract (Ex: Sales Contract). 
  2. We will create a draft and quote you our charges. 
  3. Once you have accepted the draft, we will send you indemnity documents which needs to be signed and notarized by a lawyer. 
  4. We will send you invoice for our charges. 
  5. Once you have paid us, we will swift the instrument to the beneficiary’s bank immediately. 
  6. You will pay the beneficiary at least 14 days before the expiry date (Up to 2 years from EMBLLC issue date). 

Glossary: Documentary Credit 

Same as: Letter of Credit, Credit Letter 

A Letter of Credit is a document issued by a financial institution, like FCS that guarantees payment to the seller, known as the beneficiary, should the applicant, our clientele, not fulfill the applicant’s side of the obligations in the transaction. 

Swift Financial Messaging 

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. 

Applicant 

Same as: Importer, Contracted, Buyer 

Beneficiary 

Same as: Exporter, Contractor, Seller 

Issuing Bank 

The financial institution issuing the documentary credit. 

Advising Bank 

A non-confirming financial institution that advises the documentary credit and any amendment without any obligation to honor that documentary credit. 

Negotiating Bank 

Same as: Beneficiary’s Bank  

Confirming Bank 

Financial institution obligated to honor a documentary credit issued from a separate issuing institution should that institution be unable to pay. 

Advising bank  

Bank (also referred to as the seller’s bank or exporter’s bank), usually in the seller’s country, whose 

primary function is to authenticate the letter of credit and advise it to the seller