What are the Differences Between MT 700 and MT 760?
MT700 and MT760 swift message types that banks use when issuing documentary credits and guarantees, respectively.
Banks use MT700 when issuing a commercial letter...
What is a Transferable Letter of Credit?
Transferable letters of credit are a tool used by trading companies, or other third parties, to facilitate a trade transaction. (1)
Transferable letters of credit...
Standby Letter of Credit Sample in Swift Format
A standby letter of credit is the bank's undertaking of fulfilling the applicant's obligations.
A standby letter of credit is issued as collateral and is...
Revolving Letter of Credit
Revolving letter of credit is a special type of letter of credit, which is not covered under the UCP 600 rules.
Contrary to popular belief,...
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...
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...
What are the Differences Between Standby Letters of Credit and Commercial Letters of Credit?
Standby letters of credit and commercial letters of credit are two main documentary credit types used in international trade transactions.
A standby 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....
Red Clause Letter of Credit Sample
Letter of credit that carries a provision (traditionally written or typed in red ink) which allows a seller to draw up to a fixed...
What is Irrevocable Letter of Credit? Definition and Application
Irrevocable letter of credit (ILOC) is a type of documentary credit which can not be cancelled or amended by the issuing bank without the...
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