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Can third party open LC on seller on behalf of buyer what is the procedure?
A third party can open the LC on the seller. This part of the transaction must be done on behalf of the buyer.
What is the difference between usance and deferred payment LC?
Ah, what a lovely question! Usance and deferred payment LCs both involve payment terms in trade transactions, but there's a subtle difference. Usance LC allows the buyer a specific period after receiving the goods to make the payment, while deferred payment LC allows the buyer to make the payment at a later date agreed upon in the LC. Both methods offer flexibility and trust between the parties involved in the transaction.
Calculation of lc confirmation charges?
LC confrmation charges is the charges paid to confirmation bank and born by the applicant, normally a confirmaton bank is bank which give the payment on the presentation of documents by applicant,s bank
Parties and their rights and responsibilities of a letter of credit?
All parties dealing with an LC are dealing only with documents not with goods & services.it is exporter's duty to ship the goods as per the LC and submit the documents within the stipulated time for negotiation.
What is Margin held on letter of credit?
letter of credit - credit given by bankers for the purpose of making payment to our suppliers - lc to be opened against our purchases minimum of 30 days & maximum of 180 days - margin money (min 10% max 30%) to be deposited by us. The bankers will release payment to our suppliers on behalf of us. At the time of maturity of lc, the amount which has been paid by banker to be returned to them with interest and margin money which we have deposited at the time of opening lc will be refunded by bank with interest and we can open new lc to the new supplier or existing supplier against our purchase
