We has over 10 years of experience in serving the international community with timber materials such as high quality Teak, Mahogany and Redwood etc. Over the years we have been able to establish personal relationships with private farms along the Central and South American areas where all of our resources are grown, ensuring high quality and satisfaction.
Letter and credit. Guarantee for lowering risks of transactions How it works
- Buyer and seller conclude a trade agreement, agreeing on delivery of goods, quantity, quality and payment that will be made with a Letter of Credit.
- Buyer delegates its bank (issuing bank) to open a Letter of Credit on behalf of seller in accordance with conditions agreed by both parties. Letter of Credit can include in your opinion most important conditions of the transaction – description of goods, price per unit, term of payment and a list of documents that the seller has to submit to the bank. The bank will evaluate your security.
- The issuing bank sends the Letter of Credit to announcing bank that usually is located in the country where the seller of goods is registered.
- Seller’s bank (announcing bank) announces to the seller about the opened Letter of Credit and makes aware of its conditions.
- When conditions of the Letter of Credit are received, the seller compares them with the trade agreement, If Letter of Credit does not correspond to the requirements of the agreement, the seller has the right to require changes in the Letter of Credit. Please note that Letter of Credit is a document that cannot be revoked therefore it cannot be cancelled or annulled without agreement from all parties.
- If the Letter of Credit corresponds to the requirements of the agreement, the seller sends goods to the buyer and submits documents required in the Letter of Credit to the announcing bank.
- Announcing bank checks the submitted documents. If they correspond to the conditions of the Letter of Credit, the bank can pay for them in the form agreed on in the Letter of Credit – by making immediate or deferred payment, by acceptance or by negotiation of Letter of Credit documents.
- Announcing bank sends the documents to the issuing bank. After repeated check of the documents the issuing bank makes payment to the announcing bank that makes settlement with the seller.
- Issuing bank takes off the respective amount from the buyers account and returns the documents to the buyer, as a result of which the goods are transferred for the use of the buyer.
Our terms and conditions
We has over 10 years of experience in serving the international community with timber materials such as Teak, Mohogany, and Redwood etc. Over the years we have been able to establish personal relationships with private farms along the Central and South American areas where all of our resources are grown, ensuring high quality and satisfaction. We ship directly from various ports located throughout Central America to manufacturers and wholesale distributors worldwide. Our timber is available in a variety of sizes and cuts to satisfy individual client needs. Abundant inventories are available from our network of individual suppliers and can be delivered in a minimal amount of time. With current operations and exportation to countries such as China, India, and Vietnam, PD Maderas looks forward to expanding and reaching new clients globally. Any of our sales directors will happily answer any questions or concerns regarding our product within 24 hours or less.
