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Letter of Credit Basics

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

How Does a Bill of Exchange Work?

Bill of exchange, which is also known as draft, is a financial document commonly used in international trade transactions. According to UK's Bill of Exchange...
How to Add a Confirmation to a Letter of Credit?

How to Add a Confirmation to a Letter of Credit?

Confirmation gives additional payment assurance to the exporters. When an irrevocable letter of credit is issued, the risk of payment rests with the issuing bank....

How to Cancel a Letter of Credit?

According to the letter of credit rules, a letter of credit should be issued in an irrevocable form, as a result it cannot be...
shipping marks

Shipping Marks

Packages, which are subject to international transportation, must be spotted and recognized at a distance with ease. Exporters and carriers add some sort of identification...

Is It Possible to Get Partial Payments When Making Partial Shipments?

Partial shipments, partial drawings and partial payments are very closely related terms in letters of credit transactions. A beneficiary can make partial shipments, if the...
document issued or countersigned by the applicant

Document Issued or Countersigned by the Applicant: What are the Risks?

What are the risks of a document which is to be issued, signed or countersigned by the applicant in a letter of credit transaction? In...
Reimbursement and Reimbursing Bank

Reimbursement and Reimbursing Bank

What Does Reimbursement Mean? Reimbursement is defined as a compensation paid to someone for an expense. In order to be reimbursed by another person or organisation,...
Documentary Condition and nondocumentary condition

What does a non-documentary condition mean?

Non-documentary condition can be defined as any instruction or condition that is not clearly attributable to a document to be stipulated in a documentary...
Partial Drawings and Partial Shipments

Partial Drawings and Partial Shipments: What is the Difference?

Partial shipment and partial drawing terms are usually used with the same meaning in export and import transactions. But this is not necessarily the case...
What does duplicate, triplicate, quadruplicate, quintuplicate etc. mean?

What Does Duplicate, Triplicate Mean in a Letter of Credit?

Letters of credit have a special jargon. If you are not familiar with the L/C language, you may not be able to understand what letter...
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