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Client
issues a purchase order to a
supplier
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WCI agrees
to open Letter of credit to supplier for 100% cost of
goods Under terms agreed upon by Client
and supplier.
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Supplier
ships to Client. Upon
shipping of goods to Client, supplier submits
documents to his Bank for LC negotiation
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Goods arrive
at Port and await Release
By LC issuing Bank for
customs clearance.
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Client
submits funds when requested by lender or Lender advances
funds to LC issuing bank for full amount of
Letter of Credit. Bank releases goods to Client.
Supplier receives funds from LC negotiation.
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Client
ships goods to customer and receives payment or advance on invoice
from Lender.
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