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Trade Finance

Frequently Asked Questions

How are your letters of credit different than a letter of credit opened through my bank?

ReguTrade letters of credit are opened using our bank accounts at leading banking institutions. When you open a letter of credit through your bank, you use your credit line. When you open your letter of credit through us, you use our credit lines.

Why do I need to pay your fee before you open the letter of credit? Why can`t you take your fee out of the profits of our transaction?

ReguTrade only participates in the transactions of our clients as a provider of certain financing. As a result, we do not participate in the profits of our clients` transactions. Our fees remain the same, regardless of the profit margin in the transaction.

Can I cancel my letter of credit after it has been opened?

All of the instruments issued by ReguTrade are irrevocable and cannot be canceled except by the beneficiary.

What type of collateral do you require to open a letter of credit?

In most cases ReguTrade does not require a specific collateral deposit to open a letter of credit. We offer transactional-based finance. When a client decides to open a letter of credit, they present us with the details of their transaction. We make a decision on the transaction as based on its merit. Our final decision on entering into a transaction is made according to a set of criteria.

What is the charge for opening a letter of credit?

The charge for a letter of credit depends on a number of factors. ReguTrade can provide you with a current tariff schedule at the time of your request.

What is the maximum size letter of credit that you will open?

ReguTrade is able to open letters of credit of almost any size. We consider the complexity of the transaction, the goods that are being traded and other factors having to do with the parties to the transactions and where they take place.

For what types of goods do you open letters of credit?

ReguTrade can open letters of credit for any type of goods, provided that they fall into our legal and ethical criteria. Please note that we will not get involved in transactions involving weaponry or ammunition under any circumstances.

I opened a letter of credit to my supplier, but they did not ship the goods. Will you refund my fee?

Once the letter of credit is opened, your fee cannot be refunded. ReguTrade recommends that all of our clients assure themselves of their supplier`s ability to perform before opening any banking instruments to them.