Jigsaw Capital: Letter of Credit Specialist for Importers and Exporters
Jigsaw Capital assists importers and exporters who need to issue or receive irrevocable letters of credit. We often arrange a letter of credit facility for clients to help them increase revenues and profits.
Letters
of credit are a basic means of facilitating trade finance.
Documentary letters of credit provide mutual protection for both the
importer and the exporter, because the documents which control the
shipment are held by the exporter until payment is secured.
Letters
of credit are used to pay for and ship almost any product imaginable,
ranging from electronics, foods and canned goods, clothes, machinery
and equipment, all the way to substantial commodity shipments.
When
you're dealing with LC's, you're either sending or receiving one.
Depending on which is occurring, you may require different services.
If you are importing, you are issuing a letter of credit to your supplier. Please see our linked page on import letters of credit.
If
you are exporting, you may be receiving a letter of credit from your
customer. In this case, you may need help paying your supplier based
on the incoming letter of credit. Some of the available solutions are
discussed on our linked page on exporting against letters of credit.
We
are based in the New York City metropolitan area of the United States
with finance partners domestic and abroad. Our capabilities vary from
country to country, but we can provide some basic letter of credit
services almost everywhere in the world. Certain specialty
capabilities, like purchase order finance, are limited to the United
States and possibly Europe.
We, together with our partners,
have opened letters of credit for clients on all known continents,
excepting Antartica, where commerce is not especially robust.
Each type of letter of credit below effectively increases your available capital in some way.
Our documentary letters of credit provide leverage when the client's capital base is small or already at capacity. Our trade letters of credit allow our clients to get their goods shipped with a small initial capital outlay, and are most suitable when the client has a pre-established relationship and business history with the beneficiary.
Back-to-back letters of credit. In such instances our client may be beneficiary of a non-transferable LC from his buyer which will serve as the basis by which to create a new LC to his supplier.
LC finance. An exporter may receive an LC and need to pay his supplier using his incoming LC to secure the payment.
Transfer letters of credit. A middle man between customer and supplier is the beneficiary of a transferable LC and needs it reissued in favor of his supplier.
Standby letters of credit. Certain SBLC's are used as credit enhancements to deals with primary financing in place. Others are fully collateralized.
