Financial Consultation Services - Letter of Credit

1. Financial Consultation Services - Letter of Credit What Is a Commercial Letter of Credit? Before we begin, let's quickly understand a few terms which you will encounter below. • • • • • Commercial Letter of Credit is also known as LC/DLC An importer is also known as Applicant An exporter is also known as Beneficiary or shipper Issuing Bank is also known as Importer's Bank Advising Bank is also known as Exporter's Bank A Commercial Letter of Credit (LC/DLC) is a vital letter or instrument that is issued by the issuing bank. This letter ensures that the beneficiary will be paid as per the agreed contract once the goods are shipped. To conduct international trade, both parties, i.e., the applicant and the beneficiary need to establish a trading agreement. Once the agreement is in place, the applicant will request the issuing bank to issue a Letter of Credit to the beneficiary. Now, the LC is not shared with the beneficiary directly, but first with or through the advisory bank. The advisory bank verifies the LC and then shares it with the beneficiary. Upon receiving the LC, the beneficiary is ensured that he will receive the mentioned amount as per the given timeline. An absolute law of the LC is that the issuing bank will initiate the payment once the documents are presented by the beneficiary. If the documents comply with the terms and conditions of the LC, the issuing bank initiates the payment. LC Process Explained in 7 Steps 1.The applicant and the beneficiary agrees on a contract 2.Applicant applies for a LC 3.Issuing bank issues LC to advising bank 4.Advising bank verifies the LC and shares with the beneficiary 5.The beneficiary ships goods and shares the documents with the advisory bank 6.Advisory bank shares it with the issuing bank

2. 7.Issuing bank verifies it and shares with the applicant Get Support with Your CLC Looking for the best financial consultation services? Well, your search is over now. With over 20 successful years of offering consultancy services, it can be safely said that you can find MCG's services most reliable. What do we offer? • Our team of experts comprises the decades of collective experience and knowledge in their area of study 24*7 available team to help you to connect with the experts you need • Merchant Credit and Guarantee Corporation Limited is a one-stop solution for all your finance consultation requirements. Merchant Credit and Guarantee Corporation Limited (MCG) SOURCE LINK:https://bit.ly/2YBqWOB ADDRESS: 32 Maranui Ave, EPSOM, Auckland 1051, New Zealand PHONE: +64 9 5244269 EMAIL: info@merchantcreditcorp.co WEBSITE: https://merchantcreditcorp.co/