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The Mechanism of a Revolving Letter of Credit in Foreign Trade
August 16, 2018
The Mechanism of a Revolving Letter of Credit in Foreign Trade
Revolving Letter of Credit. A fixed or non-revolving letter of credit is one in which the limit is reduced permanently…
Exemplary Actions in Case of Revocable Letter of Credit
August 10, 2018
Exemplary Actions in Case of Revocable Letter of Credit
On 10th October 1991, you have negotiated export documents valued at US $ 5,500 under ‘Revocable Letter of Credit’, valid…
What if L/C has been Issued by Importer Himself
August 10, 2018
What if L/C has been Issued by Importer Himself
Your bank issued an irrevocable LC favoring a Australian Exporter through your Brisbane Branch which confirmed it for one Million…
What are Confirmed and Unconfirmed Letter of Credits
August 10, 2018
What are Confirmed and Unconfirmed Letter of Credits
Confirmed and Unconfirmed Credits. When a letter of credit is advised to the beneficiary through a bank in the beneficiary’s…
Difference Between Revocable and Irrevocable Letter of Credit
August 10, 2018
Difference Between Revocable and Irrevocable Letter of Credit
The most acceptable method of financing trade is by confirmed irrevocable letter of credit from the viewpoint of both the…
What is Acceptance Credit in Letter of Credit
August 10, 2018
What is Acceptance Credit in Letter of Credit
Acceptance Credit. An acceptance credit calls for a usance bill of ex-change of a specified period to be drawn under…
What is the Basic Difference Between Payment Credit and Negotiation Credit
August 10, 2018
What is the Basic Difference Between Payment Credit and Negotiation Credit
Negotiation Credit. A negotiation credit is one which contains an open invitation to banks to negotiate documents under the credit.…
The Various Types of Documentary Letters of Credit
August 10, 2018
The Various Types of Documentary Letters of Credit
A letter of credit may be a clean credit or a documentary credit. A documentary credit requires the documents of…
The Purpose of Uniform Customs and Practice for Documentary Credits
August 10, 2018
The Purpose of Uniform Customs and Practice for Documentary Credits
In the sphere of international trade the letter of credit occupies an important place as a method of payment. But…
Advantages and Disadvantages of Letter of Credit
August 3, 2018
Advantages and Disadvantages of Letter of Credit
Advantages of Letter of Credit. To the exporter the advantages are: 1. The first advantage is from the financial point…