About Letter of Credit 【悟空海运​】

About Letter of Credit 【悟空海运】

A letter of credit is a written commitment to pay, by a buyer's or importer's bank ( called the is suing bank) to the seller's or exporter's bank (called the accepting bank negotiating bank, or paying bank) a specified sum in a specified currency, provided the seller meets precisely 一 defined conditions and submits the prescribed documents within a fixed timeframe. Letters of credit are formal trade instruments and are used usually where the seller is unwilling to extend credit to the buyer. In effect, a letter of credit substitutes the creditworthiness of a bank for the creditworthiness of the buyer. So L/C is one of the most common and usual ways to effect the payment.

About Letter of Credit 【悟空海运】