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Here are the types of discrepancies that can cause problems with the bank. Both, domestic as well as international market, trades use the LC to facilitate the. Some institutions maintain an official process.
There are various types of letter of credit (LC) used in the trade transactions like Commercial , Export / Import, Transferable and Non-Transferable, etc.
A letter of credit is a bank undertaking of payment separate from the sales or other contracts on which it is based.
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You must meet the terms of a letter of credit in order to get paid. This letter of credit sets forth in full our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by reference to any. A Letter of Credit refers to the documents representing the goods and not the goods themselves.
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