Our Buyers and End-Markets open Letters of Credit directly to Iron Industries, LLC.
Letters of Credit allow us to buy 1,000s of tons per month- something we cannot do with Cash Against Document (CAD) terms.
- We do not open or transfer our letters of credit.
- We use them to buy from multiple suppliers at the same time.
- Our LCs are: Irrevocable Cumulative Revolving Letters of Credit at Sight.
- The LC is opened for 60 Days. Which means we have 45 full days to ship.
- We exercise them every 300 – 500 MT.
- Our Letters of Credit are processed by Bank of America in Pennsylvania USA.
How It Works
- After loading, return the containers to the port.
- We receive the Original Bill of Lading – usually 3 days after the vessel sails.
- We Express Mail documents to Bank of America (YES. Physical documents are required).
- Bank of America submits documents to the Issuing Bank.
- Issuing Bank wire transfers payment.
- When we receive funds we immediately wire transfer payment to our Suppliers.
- Keep in mind, Iron Industries, LLC. pays for the Ocean Freight + PSI in advance of receiving our payment. So we wait too.
When Do Suppliers Get Paid?
Usually 5 – 6 days after shipping. We go as fast as we can- but this is how international trade works.
Call or WhatsApp: 1+305-780-4942