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What is a Usanse LC?
LC for 30,60,90,or 120 days is called Usanse LC
Can you discounting a lc non transferable?
Discounting is a term used for the actual drawing/negotiation that takes place under an Lc (Letter of Credit). The credit conform (accepted) documents/draft are due for deferred payment and the presentor does not want to wait for its funds till maturity date. Whether the LC is transferable or not is of no importance here. The LC itself should be 'discountable' (it is safer to have this in special instructions of the LC terms). The discounting then depends on the parties concerned, and the price for discounting (discounting rate/Libor/Airbor+spread) and the willingness of the bank that should discount. Discount can be performed with or without recourse.
What is LC at Site?
LC at Site typically refers to "Letter of Credit at Site," a financial instrument used in international trade. It ensures that payment is made to the seller upon presentation of specific documents at a designated location. This mechanism provides security for both buyers and sellers by guaranteeing that the funds are released only when contractual conditions are met. It is commonly utilized in transactions involving construction projects or large shipments.
What is the meaning of DIP test authorization in terms of Oil business?
Well, darling, a DIP test authorization in the oil business stands for "Draft, Inspection, and Payment." It's a process where a buyer can inspect and test the quality of oil before making a payment. So basically, it's like kicking the tires before driving off the lot - you want to make sure you're getting what you paid for.
What is the meaning of confirmed lc and non confirmed lc?
An irrevocable Letter of Credit can be either confirmed or unconfirmed. In a confirmed Letter of Credit, the issuing bank (representing the buyer) agrees independently to the buyer's commitments to pay the seller the agreed-up amount of money, as long as all the requirements of the Letter of Credit are fulfilled. A confirmed irrevocable Letter of Credit can become very elaborate. A second bank (often specified as a prime bank) may confirm or otherwise guarantee payment of the foreign bank that initially opened the Letter of Credit. This requirement originates from the seller and usually takes places only if the bank of the buyer is not internationally established. UNCONFIRMED L/C A letter of credit which has not been guaranteed or confirmed by any bank other than the bank that opened it. The advising bank merely informs the beneficiary of the letter of credit terms and conditions.
What is the meaning of lc?
Letter of Credit payment
What is the meaning of LC in accounting?
LC Means letter of Credit. It is a negotiable instrument to make payment through bankers of both parties, i.e. Payer & Payee
What is LC DA DP TT payment options?
LC = Payment thru Letter of Credit DA = Payment against acceptance DP = Payment against receipt of document TT = Telegraphic transfer
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.
Difference between Export LC and import lc?
An import LC is one made with reference to the buyer but with an export LC, the LC is changed to that with reference to the Issuing bank. This gives a stronger guarantee of payment to the seller.
What is the meaning of Payment will be effected provided the stipulated documents are presented and terms and conditions of the LC are complied with?
It means the bank will release your money after they approve your document presentation and get approval from the applicant of the letter of credit. If all documents are included and comply with the instructions of the LC, payment can be released according to the payment schedule (i.e. "Draft at 30 days after ship date").
What is an LC payment?
An LC payment, or Letter of Credit payment, is a financial instrument used in international trade to ensure that payment will be made to the seller upon fulfillment of specified conditions. The buyer's bank issues the LC, guaranteeing payment to the seller's bank once the seller provides the required documentation, such as shipping and invoice details. This method reduces risk for both parties, as the buyer is assured that payment will only be made when the agreed terms are met, while the seller gains security in receiving payment.
Is the drawee banker require the acceptance of applicant for payment of sight LC?
no
What is the difference between restricted LC and confirmed LC?
A confirmed letter of credit is one where the exporter's bank asks for additional guarantee from another bank of its choice that if the buyer's bank is unable to honour it's obligations then the confirming bank will make the payment on the behalf of the buyer's bank. Here, the confirming bank may be in the same country as the exporter or a well reputed international bank.A restricted letter of credit is one in which the negotiation can only be done by the bank which is chosen by the bank issuing the LC. Authorization from the issuing bank to pay the beneficiary is restricted to a specific nominated bank. Meaning is that negotiating bank is only the bank which is nominated and no other bank is authorized to do the valuation of the LC other than the nominated bank. Thus, whereas the confirmed LC is one which requires authentication of payment of negotiated value(value arrived at by the negotiating bank) by the confirming bank( the respective trade documents along with the LC will pass from negotiating bank to confirming bank so that it can take note of the quantum of guarantee), the restricted LC only requires the valuation to be done by a specifically nominated negotiating bank. Here, in case of restricted LC, there is no guarantee involved from another bank as such to the exporter's bank that payment will be made. That guarantee can be there only when the LC is confirmed.Also, restricted LC is mainly focused on valuation of the LC, whereas confirmed LC is focused on additional payment guarantee from a bank of repute.I guess that should be the difference
What is negotiation of documents under LC under reserve?
The documents presented under a documentary credit are scrutinized as per the International standards of scrutiny and negotiated if they strictly comply with the LC terms. This is called a clean negotiation. On the other hand if the documents do not comply with the LC terms and discrepancies are found, the negotiating bank may still opt to give value under the LC by paying or incurring a deferred payment obligation as per LC provided the beneficiary undertakes to indemnify the negotiating bank in the event of rejection by the LC opening Bank. This is technically called a payment under reserve. The Reserve will be lifted on acceptance of discrepancies by the LC opening Bank.
What is meant by payment term LC?
A payment term LC, or Letter of Credit, is a financial document issued by a bank on behalf of a buyer, guaranteeing payment to a seller upon the fulfillment of specified conditions. It serves as a secure method of payment in international trade, ensuring that the seller receives payment as long as they provide the required documentation, such as shipping details and invoices. This reduces the risk for both parties, as the buyer can ensure that the goods are delivered as promised before payment is made.
Is the meaning of undrawn amount of LC and unpaid document value is same?
No the undrawn amount is the amount which is not called for payment in the documents, the unpaid document value is caled for but that part of the documentaton is not according to the letter of credit reuirements
