A letter of credit is issued by a bank at a customer's request to inform a third party that the bank will pay or accept bills drawn on the customer up to the stated amount if certain conditions are met. The document then outlines various payment terms for international trade transactions, including advance payment, payment on account, payment against documents (DP bills and DA bills), payment against documents on a due date, and payment against documents under a letter of credit at the time documents are sent.
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Attribution Non-Commercial (BY-NC)
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A letter of credit is issued by a bank at a customer's request to inform a third party that the bank will pay or accept bills drawn on the customer up to the stated amount if certain conditions are met. The document then outlines various payment terms for international trade transactions, including advance payment, payment on account, payment against documents (DP bills and DA bills), payment against documents on a due date, and payment against documents under a letter of credit at the time documents are sent.
A letter of credit is issued by a bank at a customer's request to inform a third party that the bank will pay or accept bills drawn on the customer up to the stated amount if certain conditions are met. The document then outlines various payment terms for international trade transactions, including advance payment, payment on account, payment against documents (DP bills and DA bills), payment against documents on a due date, and payment against documents under a letter of credit at the time documents are sent.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
A letter of credit is issued by a bank at a customer's request to inform a third party that the bank will pay or accept bills drawn on the customer up to the stated amount if certain conditions are met. The document then outlines various payment terms for international trade transactions, including advance payment, payment on account, payment against documents (DP bills and DA bills), payment against documents on a due date, and payment against documents under a letter of credit at the time documents are sent.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
LETTER OF CREDIT IS ISSUED BY THE BANK AT THE REQUEST OF ITS CUSTOMER IN FAVOUR OF A THIRD PARTY INFORMING HIM THAT THE BANK UNDERTAKES TO PAY OR ACCEPT THE BILLS DRAWN ON ITS CUSTOMERS UPTO THE AMOUNT STATED IN THE LETTER OF CREDIT SUBJECT TO THE FULFILMENT OF THE CONDITIONS STIPULATED THEREIN
PAYMENT TERMS: ADVANCE PAYMENT
ADVANCE PAYMENT SELLER
BUYER
GOODS
PAYMENT TERMS: ON ACCOUNT
GOODS
PAYMENT
PAYMENT TERMS: DP BILLS
documents GOODS TRANSPORTATION GOODS
BANK
BANK
PAYMENT TERMS: DA BILLS
documents GOODS TRANSPORTATION GOODS
BANK
BANK
PAYMENT TERMS: DA BILLS ON DUE DATE
TRANSPORTATION
BANK
BANK
PAYMENT TERMS: DP LC: TIME OF ISSUE
BUYERS BANK ADVISES LC TO ANOTHER BANK
ADVISING BANK ISSUINGBANK
PAYMENT TERMS: DP BILLS UNDER LC AT THE TIME OF SENDING DOCUMENTS