{"id":4147,"date":"2019-01-27T18:49:45","date_gmt":"2019-01-27T23:49:45","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=4147"},"modified":"2019-02-08T18:39:35","modified_gmt":"2019-02-08T23:39:35","slug":"presentation-what-is-a-letter-of-credit","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2019\/01\/27\/presentation-what-is-a-letter-of-credit\/","title":{"rendered":"Presentation &#8211; What is a Letter of Credit?"},"content":{"rendered":"<h4>What is a Letter of Credit?<\/h4>\n<p>By reading this presentation, you will gather some basic yet very important information regarding the letters of credit.<img decoding=\"async\" class=\"aligncenter size-full wp-image-4149\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1.png\" alt=\"what is a letter of credit\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-1-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<h4>Understanding the Letter of Credit<\/h4>\n<p>Letter of credit is a payment method in international trade.<\/p>\n<p>Other payment methods in international trade are Cash in Advance,\u00a0Documentary Collections,\u00a0Open Account and Bank Payment Obligation.<img decoding=\"async\" class=\"aligncenter size-full wp-image-4151\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2.png\" alt=\"Understanding Letter of Credit\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-2-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<h4>Synonyms of the Letter of Credit<\/h4>\n<p>Common definitions used to identify the letter of credit term with the same meaning are:<\/p>\n<ul>\n<li>Documentary Credit<\/li>\n<li>Documentary\u00a0Letter of\u00a0Credit<\/li>\n<li>Documentary Commercial Letter of Credit<\/li>\n<li>Credit<\/li>\n<li>Commercial Letter of Credit<\/li>\n<li>Standby Letter of Credit<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4155\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3.png\" alt=\"letter of credit synonyms\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-3-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<h4>Letter of Credit Definition<\/h4>\n<p>UCP 600 defines letter of credit as:<\/p>\n<p>\u201cCredit means any arrangement, <span style=\"color: #008000;\">however named or described<\/span>, that is <span style=\"color: #008000;\">irrevocable<\/span> and thereby constitutes <span style=\"color: #008000;\">a definite undertaking of the issuing bank to honour a complying presentation<\/span>.\u201d<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4157\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4.png\" alt=\"letter of credit definition\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-4-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<h4>Letter of Credit Rules<\/h4>\n<ul>\n<li>ICC, International Chamber of Commerce, publishes the letter of credit rules.<\/li>\n<li>Letter of credit rules are called UCP, Uniform Customs and Practice for Documentary Credits.<\/li>\n<li>Letter of credit rules are regularly updated by ICC.<\/li>\n<li>Latest set of letter of credit rules is called UCP 600.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4159\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5.png\" alt=\"letter of credit rules\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-5-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<h4>Parties in a Letter of Credit Transaction<\/h4>\n<p>Main parties involved in a letter of credit transaction are indicated below;<\/p>\n<ul>\n<li>Issuing Bank<\/li>\n<li>Beneficiary<\/li>\n<li>Applicant<\/li>\n<li>Advising Bank<\/li>\n<li>Nominated Bank<\/li>\n<li>Confirming Bank<\/li>\n<li>Reimbursing Bank<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4160\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6.png\" alt=\"letter of credit parties\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/What-is-letter-of-credit-6-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Letter of Credit? By reading this presentation, you will gather some basic yet very important information regarding the letters of credit. Understanding the Letter of Credit Letter of credit is a payment method in international trade. Other<\/p>\n","protected":false},"author":1,"featured_media":4361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[468],"tags":[23,469],"class_list":["post-4147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-presentation","tag-letter-of-credit-definition","tag-presentation"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/4147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=4147"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/4147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/4361"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=4147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=4147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=4147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}