Types of Letter of Credit

1

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The term "import/export credit" commonly refers to this. When the terms are met, the exporter's confirming bank will release the cash.

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2

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It's meant to ensure payment or compensation in the event of a breach of an agreement's terms or conditions.

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3

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The recipient can designate another service provider to receive all or part of the money.

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4

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It allows middlemen to serve as a link between importers and exporters.

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5

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It enables companies to use a single LC for a variety of purposes up until its expiration.

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Thank You!

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Types of Letter of Credit

1

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.

2

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.

3

Transferable Letter of Credit:

The recipient can designate another service provider to receive all or part of the money.

4

Back-to-Back Letters of Credit:

It allows middlemen to serve as a link between importers and exporters.

5

Revolving Letters of Credit:

It enables companies to use a single LC for a variety of purposes up until its expiration.

Thank You!

Know More About Trade Finance.