Stale Documents
Some letters of credit indicate that stale documents are not acceptable. In rare circumstances letters of credit may also indicate that stale documents are...
Availability of Letters of Credit
According to letter of credit rules, a credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation. (UCP 600...
Effectiveness Date of an Amendment
Letter of credit is an irrevocable and conditional payment obligation of the issuing bank.
As the letter of credit is irrevocable, its terms and conditions...
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 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....
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,...
Top 10 Letter of Credit Discrepancies
Discrepancy can be defined as an error or defect, according to the issuing bank, in the presented documents compared to the documentary credit, the...
How to Check a Letter of Credit as an Exporter?
Documentary letters of credit are internationally recognized instruments that help ensure the creditworthiness and payment of the overseas parties you’re trading with.
Letter of credit...
Letter of Credit Condition: LCL/LCL Shipment Prohibited
LCL is an abbreviation that is used mostly in international shipping. Its long form is Less than Container Load (LCL).
In an LCL shipment, a...
Complying Presentation
What is a Complying Presentation?
If issuing bank determines that the presentation is complying then the issuing bank must honor. If credit is available by...
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