Import businesses are particularly susceptible to liquidity and QA/QC risk.
A very common scenario:
1) An importer works hard over the years to build rapport and eventually suppliers are willing to extend open terms.
2) The supplier encounters financial hardship and is forced to ask the importer for a deposit.
3) The importer must now come up with a deposit (damaging liquidity), and their money is now at risk in the event goods arrive in poor condition (as cost cutting can affect QA/QC standards).
What can an importer do to mitigate liquidity and QA/QC risk?
The Answer: offer their supplier a letter of credit from WESTCAP instead of sending a deposit. Our LCs are backed by OUR cash, NOT YOURS! Your cash is your livelihood–don’t sent it overseas until your goods arrive and you are sure you’re getting exactly what you want. We help hundreds of businesses grow by mitigating liquidity and QA/QC risk, and we can do it for you.