gopalakrishna

• Sep 28th, 2006

 

LC( Letter of Credit) is a set of documents which are very essential for goods being transported from one country to another.  This set includes that of invoices, shipping documents, gurantees and others. 

rama krishna

• Jul 16th, 2007

 

A letter of credit is offered by the banks which indicates that the customers ability (credit limit)

Nishant Goel

• Jul 23rd, 2007

 

A letter of credit indicates for the customers ability (credit limit) and in other words LC is a commitment from bank to the receiver for payment.

Muralidharan J

• Jul 25th, 2007

 

Letter of credit is used in export/import of goods between two countries.  It is essentially means that the bank on which the lc is opened, is standing guarantee that the payment will be effected as per the lc terms which are pre-defined and accepted by the lc opener.  When you do not know the credit worthiness of a customer you can insist for lc by which your payment is protected by the bank.

Ravi Gaonkar

• Aug 10th, 2007

 

A letter of credit is offered by the banks. A letter of credit indicates for the customers ability (credit limit). It is very essential when goods being transported from one country to another. It includes invoices, shipping documents , guarantees etc. 

hanu_tuhin

• Sep 18th, 2007

 

Letter of credit(L/c) is a set of instructions given by the applicant to his Bank to transmit the set of instructions to the beneficiary of the L/c. The applicant's bank transmits the instructions to the beneficiary through its correspondant bank(basically advising bank) residing at the land of beneficiary. On acceptance of the terms & conditions by the beneficiary(else amendments are done), beneficiary tries to fulfill the terms & conditions. On satisfaction of the issuing bank, the issuing bank reimburses the beneficiary through its reimbursing bank or directly.

shoukath

 Profile Answers by shoukath 

• Jul 21st, 2008

 

When any company buying goods from overseas that time we need L.C. to open overseas goods. From that time Bank will give guarantee to supplier in behalf of Customer.

miki

• Sep 6th, 2011

 

letter of credit is the way of banks agreement which buyer's are paying to seller.

Waheed Yakout

• Sep 7th, 2015

 

"LC" Letter of credit is strong guarantee specially through international transaction, It is so safe for both of seller and buyer, LC contain of 4 arms "Supplier, Supplier bank, Buyer and Buyer bank"