Home Letter of Credit Basics

Letter of Credit Basics

Understanding main concepts of letters of credit and most frequently used terms related to L/C payments.

What Happens if Letter of Credit is Silent in Regards to the Period of...

Documents must be presented to the nominated banks within allowed time frame under letters of credit payments. Otherwise issuing banks or confirming banks raise late...

How to Complete a Bill of Lading under a Letter of Credit Payment?

Bill of lading is a transport document covering the carriage of goods by sea. Letters of credit rules define 4 different types of bills of...
Approval Basis

Approval Basis

Definition: Approval basis is a letter of credit term used in situations where the beneficiary could not prepare the documents according to the letter...
Freight Notations Under Letters of Credit: Freight Prepaid or Freight Collect

Freight Notations Under Letters of Credit: Freight Prepaid or Freight Collect

Determining the party who arranges the transportation and pays for the transport cost is one of the major decisions in any international trade transaction. The...
Letter of Credit Glossary

Letter of Credit Glossary – Most Frequently Used L/C Terms

You can find most frequently used letters of credit terms on this page. Please click links for further explanations. About Means a tolerance of...
Advantages and Disadvantages of Letters of Creditvideo

Advantages and Disadvantages of Letters of Credit

Letter of credit is one of the payment methods in international trade. Just like other payment methods it has certain advantages and disadvantages. Advantages of...
Is it possible to submit 2 bills of lading under one letter of credit presentation?

Is It Possible to Submit 2 Sets Bills of Lading Under One Letter of...

Amer from Ajman (United Arab Emirates (UAE)) asks this question. I would like to thank him once again for this great question. Question: I have...
What happens if due date of a letter of credit falls on a bank holiday?

What Happens if Due Date of a Letter of Credit Falls on a Bank...

Letter of credit is a conditional payment method. It is only payable if the issuing or confirming bank determines that the presentation is complying. Once,...
How to determine date of shipment on a Road Transport Document?

How to Determine Date of Shipment on a Road Transport Document?

Date of shipment is one of the key definitions in a letter of credit transaction. It is used to determine whether shipment made on...
How to determine date of shipment on a Charter Party Bill of Lading?

How to Determine Date of Shipment on a Charter Party Bill of Lading?

Date of shipment is one of the key definitions in a letter of credit transaction. It is used to determine whether shipment made on...
- Advertisement -

MOST POPULAR

LATEST POSTS