• LC DISCOUNTING

    LC DISCOUNTING

    Discounting

    Since a letter of credit is a written promise by a bank to pay for goods a buyer purchases from a seller, discounting is a way a seller gets paid immediately, even if the buyer wants a longer term for payment. The bank may offer to pay the seller for the goods. The bank then pays the seller the full amount of the invoice minus a discount.

     

    We shall study about this article further, in detail, in our next post.

     

    Keep reading!!

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