Letters of Credit

What it is

A Letter of Credit is a commitment from Kingstar Holdings, on behalf of a buyer, to pay a seller once agreed shipping and documentary conditions are met. It replaces counterparty risk with bank assurance, so both sides can trade across borders without either carrying the full risk of the other.

Who it's for

Importers who want to secure supply without paying upfront, and exporters who want certainty of payment before releasing goods.

How it works

1. 01

   Apply

   Buyer applies to Kingstar for an LC in favour of the seller.

2. 02

   Issue

   We issue the LC with the agreed terms and documentary requirements.

3. 03

   Ship & present

   The seller ships and presents documents proving the terms were met.

4. 04

   Verify & pay

   We verify and release payment.

Benefits

• Reduced counterparty risk for both sides
• Payment tied to documentary proof, not trust
• Recognised globally under UCP 600 practice
• Flexible structures (sight, usance, transferable, confirmed)