Letter of Credit Basics

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

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....
dates

Dates

Whatever your position in an international letter of credit transaction, whether you are an export specialist in a small manufacturing company, an import responsible...
Freight Forwarder’s Bill of Lading Not Acceptable

Freight Forwarder’s Bill of Lading Not Acceptable

Some issuing banks add an additional condition to the letters of credit they have issued, indicating that freight forwarder's bill of lading is not...
How Does a Negotiable Letter of Credit Work?

How Does a Negotiable Letter of Credit Work?

What Does Negotiation Mean? Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents...
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...
Which is the best insurance type that should be selected against non-delivery risks?

Which is the Best Cargo Insurance Type That Should be Selected Against Non-Delivery Risks?

Institute Cargo Clause A (All risks), Institute Cargo Clause B and Institute Cargo Clause C are the main types of cargo insurance types used...
Bill of Lading Stating That All Originals Must be Surrendered

L/C Demands a B/L Stating That All Original B/Ls Must be Surrendered

A negotiable bill of lading is a bill of lading where the consignee’s name is preceded by the words “to order,” thus allowing the...
Understanding the benefits of confirmed lc at sight.

Confirmed L/C at Sight

Confirmed L/C at sight covers two definitions: Confirmed letter of credit which is payable at sight. Letters of credit can permit the beneficiary to be...
What are the Differences Between Bank Guarantees and Letters of Credit?

What are the Differences Between Bank Guarantees and Letters of Credit?

Demand guarantee is an irrevocable undertaking issued by a bank according to instructions received from the principal, to pay the beneficiary any sum that...
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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...
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