What should I do if the issuing bank of the letter of credit goes bankrupt?

A confirmation bank and a standby letter of credit can be requested to protect the interests of the company, as can direct prepayment.

There are three main aspects of L/C:

1. A letter of credit is a self-sufficient instrument. The letter of credit is not attached to the sales contract, and the bank emphasizes the written certification of the separation of the letter of credit and the basic ** when reviewing the documents;

2. The letter of credit is a pure documentary transaction. The letter of credit is a voucher payment, not the goods. As long as the documents match, the issuing bank should pay unconditionally;

3. The issuing bank bears the primary liabilities for payment. A letter of credit is a kind of bank credit, it is a kind of guarantee document of the bank, and the issuing bank has the primary responsibility for payment.

First of all, are you a beneficiary or an applicant? But in any case, if the issuing bank is blacklisted like a global cry, then it means that the issuing bank's reputation in the global banking system is very poor, that is, the letter of credit issued by the issuing bank will generally not be accepted.

Therefore, whether you are the beneficiary or the applicant, you need to change the issuing bank to re-issue the certificate.

A confirmation bank and a standby letter of credit can be requested to protect the company's interests, and direct prepayment is also a good way to pay.

Think you're unlucky......Therefore, it is better to go to a state-owned bank to open a certificate at this time.

You can go to your own negotiation bank and ask!!

Then you won't get it.

The risk of bank failure is one of the main risks of letters of credit, and of course letters of credit are useless.

The constraints of the letter of credit on the buyer are relatively large, and it must occupy a certain amount of credit and funds, so the buyer generally does not like to use the letter of credit, but most of the foreign trade in China uses the letter of credit, because for the seller, the letter of credit is more insured than a p, d p and other ways, and the bank is the first payer. Of course, there is also a risk of bank failure, so the creditworthiness of the issuing bank is quite important.

Check bank credit:

1. Entrust a bank in China to inquire, but it requires a certain fee.

2. Consult the Chinese consulate in the place where the issuing bank is located, they are familiar with the local bank.