International Trade Facilities - Commercial Letter of Credit and Documentary Letter of Credit (DLC) are Important Aspects for all Import & Export Trades between different continents or countries.
International Trade Finance often needs LC at
Sight and Time LC that is called U
A sight Letter of Credit becomes
due as soon as the beneficiary
presents the proof of delivery or
proof of shipment, and other
ancillary documents.
Whereas, a Time Letter of Credit or
USANCE LC needs certain days to
pass after submitting a letter of
credit, proof of delivery or shipment,
and other required documents,
before the payment becomes due.
3) Importer applies to his
bank for a letter of credit at
sight in Favor of the
exporter.
4) Importer's bank approves
the credit risk of the buyer,
issues and forwards the
credit to its correspondent
bank.
5) Advising bank will
authenticate the credit and
forward the original credit to
the exporter.
7) Exporter party will present
the required documents to the
advising or confirming bank to
be processed for payment.
9) If the documents are correct, the
advising or confirming bank will
claim the funds by: 10) Debiting the
account of the issuing bank.11)
Waiting until the issuing bank
remits, after receiving the
documents.
12)Reimburse on another
bank as required in the
credit.
14) Issuing bank will
examine the documents
for compliance.
15) Issuing bank then
forwards the documents
to the Importer.
Contact Us At:
https://financialdealz.
com/
Sight and Time LC that is called U
A sight Letter of Credit becomes
due as soon as the beneficiary
presents the proof of delivery or
proof of shipment, and other
ancillary documents.
Whereas, a Time Letter of Credit or
USANCE LC needs certain days to
pass after submitting a letter of
credit, proof of delivery or shipment,
and other required documents,
before the payment becomes due.
3) Importer applies to his
bank for a letter of credit at
sight in Favor of the
exporter.
4) Importer's bank approves
the credit risk of the buyer,
issues and forwards the
credit to its correspondent
bank.
5) Advising bank will
authenticate the credit and
forward the original credit to
the exporter.
7) Exporter party will present
the required documents to the
advising or confirming bank to
be processed for payment.
9) If the documents are correct, the
advising or confirming bank will
claim the funds by: 10) Debiting the
account of the issuing bank.11)
Waiting until the issuing bank
remits, after receiving the
documents.
12)Reimburse on another
bank as required in the
credit.
14) Issuing bank will
examine the documents
for compliance.
15) Issuing bank then
forwards the documents
to the Importer.
Contact Us At:
https://financialdealz.
com/