Types of Letter of Credit
Commercial Letter of Credit
The term "import/export credit" commonly refers to this. When the terms are met, the exporter's confirming bank will release the cash.
Standby Letter of Credit
It's meant to ensure payment or compensation in the event of a breach of an agreement's terms or conditions.
Transferable Letter of Credit
The recipient can designate another service provider to receive all or part of the money.
Back-to-Back Letters of Credit
It allows middlemen to serve as a link between importers and exporters.
Revolving Letters of Credit
It enables companies to use a single LC for a variety of purposes up until its expiration.
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