An LC contract is a request by a customer to have a letter of credit issued, advised, or confirmed for a trade transaction. An LC substitutes the name and credit of a bank for the names and credit of the people concerned. Even if the remitter fails to pay, the bank promises to compensate the seller/beneficiary.
Commercial, Export/Import, Transferable and Non-Transferable, Revocable and Irrevocable, Stand-by, Confirmed, and Unconfirmed, Revolving, Back to Back, Red Clause, Green Clause, Sight, Deferred Payment, and Direct Pay LC are the different types. In trade operations, a letter of credit is an important financial tool.
You can open a Letter of Credit with your bank. The bank's responsible official assists you in completing the essential application for an LC. Because the LC is opened on the basis of your purchase contract, a copy purchase order / export contract, as well as other needed papers, must be produced.
An LC is a promise given by a bank on behalf of the buyer that payment will be made to the exporter if the LC's terms and conditions are followed, as evidenced by the presentation of all requisite documentation. To obtain this service, the buyer establishes credit and pays his or her bank.
A letter of credit might be 90 days, 60 days, or even 30 days in length: The letter of credit is abbreviated as "LC." Simply put, the cash promised in the letter of credit must be paid within 90, 30 or 30 days, otherwise the guaranteeing bank would be held liable.
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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
5
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
5
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
5
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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