WHAT IS A DOCUMENTARY LETTER OF CREDIT?
A Documentary Letter of Credit (DLC) is an essential financial instrument in international trade that provides a guarantee of payment between buyers and sellers. This article will explore the intricacies of a DLC, its various uses and benefits, and the process involved in obtaining one. Introduction to Documentary Letters of Credit A Documentary Letter of […]
WHAT IS A DOCUMENTARY LETTER OF CREDIT ? (Part 2)
FOR THE BENEFICIARY (THE SELLER/EXPORTER)Payment is guaranteed as long as you comply with the terms and conditions of the documentary letter of credit.You are protected against the inability to pay or bankruptcy of the buyer. The issuing bank assumes credit risk when issuing the DLC.Reduce the collection time of accounts receivable as the DLC speeds […]
WHAT IS A STANDBY LETTER OF CREDIT (SBLC)?
A Standby Letter of Credit (SBLC) is a financial instrument that serves as a secondary payment method, issued by a bank on behalf of a buyer, to guarantee that the seller will receive payment in the event that the buyer is unable to make payment. SBLCs are primarily used in international trade transactions but can […]
