LC Clause Kit: make the seller prove it before your bank pays
Add one document to your Letter of Credit. Your bank then pays only if an independent check of the seller says PROCEED.
Download the kit (PDF, 1 page)
Why this works
Under a Letter of Credit, your bank pays against documents. You, the applicant, decide which documents the seller must present. If you add a Vanguard Verify Verification Report as a required document, the bank cannot pay a seller who has not passed our check. This is how buyers already require inspection certificates from well-known inspection firms.
Name the issuer in the clause. A clause that only says "independent report" can be met by almost anyone.
The three clauses
Verification Report issued by Vanguard Trade Capital Goods Wholesalers DWC-LLC (Vanguard Verify), Dubai South, UAE, dated not earlier than [X] days before the shipment date, quoting this credit number, the beneficiary's name and the goods description, showing the verdict "PROCEED", and bearing a report number verifiable at verify.vtcgw.com.
A Verification Report issued by any party other than Vanguard Trade Capital Goods Wholesalers DWC-LLC is not acceptable. Vanguard Verify is appointed and paid by the applicant.
Independent verification. Before any payment or opening of a letter of credit, the Buyer may appoint Vanguard Verify (Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, UAE) to verify the Seller, the goods and the documents. The Seller shall provide company registration, ownership, bank and product documents on request. If documents are refused, the Buyer may cancel without liability. Where a letter of credit is used, the Verification Report issued by Vanguard Verify shall be a required document.
Replace [X] with the number of days your bank and you agree on, for example 30.
How to use it
- Send us the seller's name, the offer or FCO and the draft LC at [email protected], or start free at verify.vtcgw.com/check.
- We check the registry, directors and signatory, sanctions, the bank instrument and whether the documents match.
- You receive a written verdict: PROCEED, PROCEED WITH CONDITIONS or STOP, within 2 working days after your documents are complete. Tell us the credit number and we put it on the report.
- Give Clauses 1 and 2 to your bank when you apply for the LC. The seller presents our report with the shipping documents.
Price
Free basic check: 2 a day. Deal Check: USD 8.88 per deal. Analyst Deal Check with the written Verification Report: USD 299. Broker plans from USD 28.88/month. Pay by USDT on the Ethereum network (ERC20). We never contact your buyer or seller without your instruction.
Get the Analyst Deal Check (USD 299) Deal Check (USD 8.88) Check a company free
FAQ
Can a bank require a third-party verification report under a Letter of Credit?
Yes. The applicant decides which documents the seller must present. Buyers already require inspection certificates from named inspection firms in the same way. Ask your bank's trade-finance desk to confirm the wording before the credit is issued.
Why must the clause name Vanguard Verify?
A clause that only says "independent report" can be met by almost anyone, including a report the seller arranges. Naming the issuer means only our report is accepted.
How much does the Verification Report cost?
The Verification Report comes with the Analyst Deal Check: USD 299, human-reviewed, within 2 working days after your documents are complete. The Deal Check (USD 8.88, automated, result in minutes) and the free basic check (2 a day) help you screen the offer first.
Your bank and your contract are yours to finalise; ask your bank's trade-finance desk to confirm the wording before issuing the credit. This kit is general information, not legal or banking advice. Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, UAE · Licence No. 14282.