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1) Documentary Letter Of Credit : In this type of letter of credit, it is obligatory to send documents of title to goods along with bill of exchange. If the bill of exchange is not accompanied by these documents the bank may not honor the bill of exchange. By document we mean export document which … Read more
Payment terms are very important aspects in the import export trade. In international trade there are different methods of making the payments. Let’s understand all methods one by one. 1. Advance Payment When exports receive the payment first and ship the goods subsequently, it is called as advance payment. It is good for exporter as … Read more
Meaning Letter of credit is the written instrument issued by the importer’s (buyer’s) bank to the exporters (seller). L/C is the guarantee given by buyer’s banks to remit the amount to the seller according to the terms and conditions based on the contractual agreement between buyer and seller. L/C is the most reliable and acceptable … Read more