• letter-of-credits

    LETTER OF CREDITS

    Definition

     A Letter of Credit is a written instrument issued by a bank, at the request of its customer – the Importer (Buyer), whereby the bank promises to pay the Exporter (Beneficiary) for goods or services, provided that the Exporter presents all documents called for, exactly as stipulated in the Letter of Credit, and meet all other terms and conditions set out in the Letter of Credit.

     

    A Letter of Credit is also commonly referred to as a Documentary Credit. 

     

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

     

    Keep reading!!

Leave a comment

If you want to share your opinion, leave a comment.

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

X

Pin It on Pinterest

X