levone
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F18(080410) ----L/CFOB Business Forum,_(D.d"A2R/Y
What is L/C?
&O)h0e3l.f9s,n!pbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business*L/C is short for letter for credit, [A Professional Business Forum]!h4C0y4s7g!p2N9_(J*c%B
*A documentary Credit is a conditional bank written undertaking of payment. $D!e9k#J7v
*A letter issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank, its branches, or other associated banks or agencies. 7o-o2?!d*\
FOB Business Forum#Q%E8`%N5t.r6N8Y!G4p
*Investment Dictionary:
-X+U+f5K6S[A Professional Business Forum] A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
1C1{(e0F)r'Wbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business
!?+z#] S+t*Investopedia Says:
'] _!i;H$\&c5h*Gbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business Letters of credit are often used in international transactions to ensure that payment will be received. Due to the nature of international dealings including factors such as distance, differing laws in each country and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped.
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;m'Q3W5R0R7K+~0d2G*Wikipedia: FOB Business Forum2k.j&V L"H5^(`
A letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable payment undertaking (it can also be revocable, confirmed, unconfirmed, transferable or others e.g. back to back: revolving but is most commonly irrevocable/confirmed) to a beneficiary against complying documents as stated in the Letter of Credit ... More details pls read : http://www.answers.com/topic/letter-of-credit?cat=biz-fin
6I3S*T I4t!w"o5P9o"jbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business
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How it works?
4]4J7z9w N&Z)A ^:w0L+{Here is the process of L/C (standard key when i in school ,my teacher showed me ) business forum,trade forum,business opportunity,Business China,Business India,Brazil business(c-I*P3^'D
:S9~&~:O5e0n$bFOB Business Forum①.The buyer and seller conclude a contract and agree to pay by L/C .
,s"R3t:x6?*^/g,sforum.fobshanghai.com②.The applicant applies to Issuing bank for issuing a L/C to named beneficiary by payment of L/C or collateral.
0h1D#T$A A(TFOB Business Forum③At the request of applicant , issuing bank opens a L/C to the beneficiary??s bank ,ie: advising bank .
"L$^(w!h$K#C8k!r7d7D+c3GFOB Business Forum④After receipt of L/C from the issuing bank , advising bank authenticates the L/C and notifies it to the beneficiary .
"v7d)k$d5K,~2O+_-N6dFOB Business Forum⑤The beneficiary , makes the goods ready and effects the shipment of goods as per quality , quantity , and shipment date stipulated by L/C .
;P#w+C2l'I:Jbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business⑥Next , beneficiary presents all documents required by L/C to negotiating bank for Payment .Meanwhile , negotiating bank effects the payment on behalf issuing bank .
4y;g0`0w f6G7J.P k9MFOB Business Forum⑦After that, Negotiating bank negotiates all documents to issuing bank for reimbursement at the same time .If there is no discrepancy between documents and L/C, issuing bank will pay negotiating bank .
7Q8}/Q&`:x4h!t;@6p6S[A Professional Business Forum]⑧Issuing bank presents all documents to the applicant and asks him to pay to reminder, meanwhile , the applicant effects the payment and gets all documents .
&I#M)n&O'] Y7W+xFOB Business Forum⑨Finally , when the goods have arrived , the applicant takes delivery . [A Professional Business Forum]5h2F5o"h"i0p!q4n*U t
1C)i4F%k#o i9DFor Ch-En explanation,please download the attachment.(Include the definition,illustration,classification,Amendment of L/C...)business forum,trade forum,business opportunity,Business China,Business India,Brazil business+Z%`(p!J6h'~#M'l
9_"N+z%G B8r9pFOB Business Forum [A Professional Business Forum]*I%U(e"]4\9r4Z
9X!v1G+w/W,o5d;I9ebusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business[ Last edited by levone at 2008-4-10 12:20 ]
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