Under LC, there are four key steps to the process:
The LC is issued.
Ship the products.
Delivering the documents to the confirming bank.
Receive payment from the importer and take custody of the items.
A Letter of Credit (LC) is a document that guarantees payment to the seller by the buyer. It is given by a bank and ensures that the seller is paid on time and in full. If the buyer is unable to make such a payment, the bank pays the entire or remaining balance on the buyer's behalf.
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.
Main types of LC
Irrevocable LC. This LC cannot be canceled or modified without the consent of the beneficiary
(Seller).
Revocable LC.
Stand-by LC.
Confirmed LC.
Unconfirmed LC.
Transferable LC. .
Back-to-Back LC.
Payment at Sight LC.
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.
Learner's Ratings
4.8
Overall Rating
88%
8%
4%
0%
0%
Reviews
J
Jay Vyas
5
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.
M
Md Sabbir Hasan
5
very Good
V
Vinod Kumar
5
VERY GOOG
V
Vinod Kumar
5
Logistic best course
A
Ayush
5
Thankyou
S
SACHIN
5
AWESOME
R
Rudra S
5
Excellent Tutor Kunal Sir has a lot of knowledge about the topic
Share a personalized message with your friends.