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ubcnewsworld
Business & Economics
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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/
