Letter of Credit LC Defintion Top 9 Types of Letter of Credit

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In this video on Letter of Credit, here we discuss how the letter of credit works, types of Letter of credits. We also discuss important Features of LCs. • 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐋𝐞𝐭𝐭𝐞𝐫 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭 (𝐋𝐂)? • ------------------------------------------------------ • A Letter of Credit LC is a written payment commitment given by the buyer or importer bank i.e. the issuing of LC from bank to the seller or exporter i.e. acceptance of bank, negotiation of bank or payment to the bank. • 𝐋𝐞𝐭𝐭𝐞𝐫 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭 𝐓𝐲𝐩𝐞𝐬 • ------------------------------------------ • #1 - DP LC or DA • #2 - LC Irrevocable and Revocable • #3 - Restricted LC • #4 - Letter of Credit LC with or without Recourse • #5 - Confirmed LC • #6 - Transferable LC • #7 - Back to Back LC • #8 - Standby LC • #9 - Resolving LC • 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐬 𝐨𝐟 𝐋𝐞𝐭𝐭𝐞𝐫 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭 • ------------------------------------------------------ • #1 - LC is a formal, negotiable financial or trade instrument. So the issuing of LC from bank pays the beneficiary or any bank nominated by beneficiary. • #2 - In the case of the LC, the international banking system occurs and acts as an mediator between the sellers and buyers who are the separate and are unknown to each other • #3 - LC is a non-negotiable device but can be transmitted with the applicant's approval. • To know more about the 𝐋𝐞𝐭𝐭𝐞𝐫 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭 (𝐋𝐂), you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/letter... • Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - / @wallstreetmojo

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