Letter of Credit Basics

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


Confirmation and Confirmed Letter of Credit

When an irrevocable letter of credit is issued, the risk of payment rests with the issuing bank. This type of letter of credit is defined...
payment types in a letter of credit transaction

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...
letter of credit transactionvideo

Letter of Credit Transaction

On my previous posts, I have not only made a definition of a letter of credit, but also clarified its types and parties that involved...
letter of credit risks

Risks in Letters of Credit

Documentary credit is an essential part of the export process. The documentary credit system has been used for over a hundred and fifty years, and still plays a...
parties to letter of credit

Parties to Letters of Credit

This page deals with the parties of the letter of credit. Main parties of a typical letter of credit transaction are applicant, beneficiary, issuing bank, confirming bank, nominated bank,...
Types of Letters of Credit

Types of Letters of Credit

Have you ever heard any of the following trade finance terms and wonder their meanings: red clause, confirmed, standby, irrevocable. These are the terms that...

What is Letter of Credit

Letter of credit, in a broad perspective, is one of the payment methods in international trade. The letter of credit is distinguished itself from other...
How to Work With a Letter of Credit Sample?

How to Work With a Letter of Credit Sample?

You should understand that letter of credit samples would not be a magic formula to solve your letter of credit problems. Letter of credit is...
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