📌 IMPORTANT UPDATE – January 15, 2026

When this article was originally published in 2019, letter of credit costs were minimal, making this Extended Terms solution economically attractive. However, LC costs have increased significantly since then, and the economics of this approach no longer make sense for most contractors.

Looking for flexible pricing solutions? World Forest Group still offers creative contract structures for long-term mat programs. Contact us to discuss current options that work with today’s market conditions, or request a quote for your specific project needs.

Are your customers pushing you on terms? Flexible mat payment terms can help.

Problem 

Your customers are pushing on payment terms.

Solution

Post a documentary letter of credit for your mat purchases. World Forest Group can provide you with up to six-month payment terms thereby satisfying your customer.

Unintended (Good) Consequences

  1. Safer transaction and reduced risk by protecting the buyer with two additional layers of oversight.
  2. You may find that offering longer terms to your customer provides you with a competitive advantage in the bid process by combining a superior product with superior payment terms.

How does it work and what is it? (Short summary. More details on request.) An Irrevocable Documentary Letter of Credit is a financial instrument used by banks to guarantee buyers and sellers obligations to each other.

General advantages

 Buyer’s and seller’s banks have the relationship rather than buyer and seller. By replacing companies with banks, risk and cost of business is reduced.

Specific advantages for buyer

  1. Seller is not paid until proper documentation is submitted to buyer’s bank. Documents are generated by the largest and most credit worthy transportation companies.
  2. Buyer’s bank reviews documentation extremely stringently adding a layer of comfort and expertise on top of buyer’s normal back office operations.
  3. Financing: Banks borrow and lend to each other at much lower rates than customers and vendors do.

Who is World Forest Group LLC’s bank?

Contact us

Download PDF Now