LCconnect Launches Pilot Program for Online Letter of Credit Execution
LCconnect announced the creation of the first globally accessible Internet portal dedicated to letters of credit (LCs). LCconnect launched its Marketplace and Community pilot program with nine participants representing Fortune 500 companies and global banks. The Community is currently accessible to all letter of credit practitioners at www.lcconnect.com. The Marketplace will be available to all eligible participants later this year. The Marketplace streamlines the documentary and standby LC application and pricing process for both companies and banks. Companies complete a standard application form and can simultaneously invite multiple relationship banks to bid for their letters of credit. The benefits are reciprocal – banks have more biddable LC opportunities, while companies utilize a more efficient electronic application process. Additionally, banks will be able to participate in LCconnect’s secondary market for letters of credit, creating a more efficient LC credit management process.