How to Open a Letter of Credit?
On this page, I will try to answer the question "How to open a letter of credit?" by explaining the lc application process in...
Correct Addresses of the Beneficiary and the Applicant
When the addresses of the beneficiary and the applicant appear in any stipulated document, they need not be the same as those stated in...
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...
What is Business Identifier Code (BIC) and International Bank Account Number (IBAN)?
Whatever your payment method would be, cash in advance, open account, cash against documents, letter of credit or bank payment obligation, you need to...
What is a Draft Letter of Credit?
Understanding the Importance of a Draft Letter of Credit
A letter of credit is a conditional payment method.
An exporter is required to submit documents, which...
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,...
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...
How Does an Import Letter of Credit Work in International Trade Transactions?
On this page, I will try to answer the question “How Does an Import Letter of Credit Work?” by explaining the import letter of...
5 Biggest Letter of Credit Mistakes
In international trade, there are couple of payment options available such as cash against documents, open account, advance payment and letter of credit.
Letter of...
What Happens If a Letter of Credit Calls For a Wrong Incoterms?
Daily practice shows us that Incoterms are not used in a correct way as per ICC rules.
Exporters and importers frequently use wrong incoterms in...
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