Many of you would have come across the term Letter of Credit (L/C). What is the need for a Letter of Credit and how does a Letter of Credit work. A Letter of Credit or Documentary Credit is a promise by a bank on behalf of. A letter of credit (LOC) is a bank document that guarantees a payment. See how LOCs work, learn the terminology, and get examples of how they're used. A Letter of Credit is a payment term generally used for international sales The Bank that Advises the LC to the Seller is called the Advising Bank which is.
Related VideosLetter of Credit - LC-Letter of Credit - LC - letter of credit meaning - letter of credit in Detail Consider a case, where the buyer doesnt turn up to receive his cargo, possibly due to a sharp fall in the price of commodity. But there could be others too. While he may be sued by the applicant at a later point, the issuing bank cannot reduce the payment owed to correspond with the damage occurred. The shipping line, customs, ports etc are not concerned with the LC. Lc full form bank job more information click on Revolving LC. Who are the parties involved in Letter of Credit?
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