A representative of the supplier of goods or services;
Posted: Mon Dec 23, 2024 6:51 am
importer-buyer;
issuing bank — an organization on the payer's side;
advising bank —
exporter (beneficiary of the transaction).
Enlarge imageLetter of credit opens borders for business
Letter of credit opens borders for business
A manufacturing company, wanting to raise the status of the furniture it produces, is looking for ways to win the favor of the most demanding customers. In search of even more exquisite types of wood, Roman luxembourg whatsapp number came across the Italian company "Pinocchio", whose assortment includes elite bacaut, ebony and makassar. The prices are reasonable, the delivery period is no more than three months. The manufacturer begins negotiations with the exporter of elite raw materials.
Having agreed, the company transfers the entire amount to the account of the issuing bank "RusBank". It, in turn, notifies the advising ItalianoBank about this. The Italian bank informs the beneficiary - the company "Pinocchio" that the letter of credit is open. The exporter begins to fulfill the order.
After the products are delivered to a certain location, the companies jointly draw up supporting documents. And the process continues in the opposite direction.
Pinocchio agents provide documents to the advising bank, which in turn checks their compliance with the requirements of the letter of credit agreement. If there are no discrepancies, ItalianoBank will send the documents to the issuing bank. RusBank, having also verified their correctness, will transfer the agreed amount to the current account of the Pinocchio company in the advising bank.
Types of bank letters of credit
The complexity of the document flow inherent in letter of credit agreements is largely due to the variety of approaches and nuances of all sorts of market situations and cases. For this reason, there are many classifications in the field of such banking services. Let's consider the main types of letter of credit agreements.
issuing bank — an organization on the payer's side;
advising bank —
exporter (beneficiary of the transaction).
Enlarge imageLetter of credit opens borders for business
Letter of credit opens borders for business
A manufacturing company, wanting to raise the status of the furniture it produces, is looking for ways to win the favor of the most demanding customers. In search of even more exquisite types of wood, Roman luxembourg whatsapp number came across the Italian company "Pinocchio", whose assortment includes elite bacaut, ebony and makassar. The prices are reasonable, the delivery period is no more than three months. The manufacturer begins negotiations with the exporter of elite raw materials.
Having agreed, the company transfers the entire amount to the account of the issuing bank "RusBank". It, in turn, notifies the advising ItalianoBank about this. The Italian bank informs the beneficiary - the company "Pinocchio" that the letter of credit is open. The exporter begins to fulfill the order.
After the products are delivered to a certain location, the companies jointly draw up supporting documents. And the process continues in the opposite direction.
Pinocchio agents provide documents to the advising bank, which in turn checks their compliance with the requirements of the letter of credit agreement. If there are no discrepancies, ItalianoBank will send the documents to the issuing bank. RusBank, having also verified their correctness, will transfer the agreed amount to the current account of the Pinocchio company in the advising bank.
Types of bank letters of credit
The complexity of the document flow inherent in letter of credit agreements is largely due to the variety of approaches and nuances of all sorts of market situations and cases. For this reason, there are many classifications in the field of such banking services. Let's consider the main types of letter of credit agreements.