A letter of credit is a financial agreement between a bank, its customer, and the beneficiary. The letter of credit, which is usually issued by an importer's bank, ensures that the beneficiary will be paid whenever the letter of credit's terms are met.
LG is commonly used in real estate contracts, infrastructure projects, constructions, project management, and other areas where LC is employed. The issuing bank issues a bank guarantee to the recipient, ensuring payment in the case of a delay or other defect.
The bank pays the sum to the beneficiary once the duty on the production of documentation on contract fulfilment is met. A bank guarantee, on the other hand, pays the beneficiary if the BG contract's obligations are not met.
Small firms use letters of credit and letters of guarantee, sometimes known as bank guarantees, to generate cash flow. Credit lines such as LCs and LGs guarantee payments for products and services.
A letter of credit, sometimes known as a "credit letter," is an assurance from a bank that a buyer's payment to a seller would be received on time and in the exact amount. The bank will be forced to cover the full or remaining price of the purchase if the buyer is unable to make a payment on the transaction.
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Jay Vyas
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This is just awesome course. I gained so much knowledge about Import-Export Business by learning this course.
LearnVern, you are doing an awesome job by teaching for free.
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prabhat sharma
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how many companies of import and export are hiring ? please provide the list and is it possible to start it without office as an individual ?
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Navghanji Sorabji Thakor
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Nice
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Captain Marvel
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Kunal Dugad Sir ! You nice learn to Import And Export for Free Of Cost - Thanks Kunal Dugad Sir and Learvern Team !
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Mr Asad
5
our first question is Blance of trade?
its means when you start your international trde to another country so you have a conttact a banl of finance instituions for money to devlope a products this is
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Mahant Burman
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Its Very Important For a Person who is Doing a Professional Course Have a depth knowledge and real world experience a part of book's knowledge.
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sanjiv chouhan
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sir saste mai buyer ka data kaise uper kre,iska koi solution hai to plz btaiye
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Raj chauhan
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what a way of teaching, love this course, THANK YOU SO MUCH SIR FOR MAKING SUCH A GREAT COURCES.
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Ajay Kumar
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I have taken another courses on the subject but this is the best course I have gone through. Mr Duggal has explained in such a way that even a new learner can understand very well. Recommended.
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Subhadip Chakraborty
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This course has helped me a lot to gain a good quality of knowledge that I can use in my future job opportunities.
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