1. Negotiate LC Terms 2. Buyer goes to issuing bank opens an LC 3. Bank A sends LC to Bank B 4. Bank B checks and verified LC and forwards to supplier 5. Supplier ships goods, sends shipping documents to Bank B 6. Documents forwarded to Bank A and they verify and send to buyer 7. The buyer can then make the payment to the buyer, or depending on their agreement
I think there is a mistake here. Buyer or Importer (Mr B) should make the payment to Issuing Bank. Then only the documents are released to Mr B to acquire the goods from shipping authorities. As for Mr A (Seller or Exporter) he receives payment at the very beginning from the Advising Bank when he presents the documents to the effect that he has shipped the goods to Mr B.
1. Negotiate LC Terms
2. Buyer goes to issuing bank opens an LC
3. Bank A sends LC to Bank B
4. Bank B checks and verified LC and forwards to supplier
5. Supplier ships goods, sends shipping documents to Bank B
6. Documents forwarded to Bank A and they verify and send to buyer
7. The buyer can then make the payment to the buyer, or depending on their agreement
Simple and accurate. No complicated words used
I think there is a mistake here. Buyer or Importer (Mr B) should make the payment to Issuing Bank. Then only the documents are released to Mr B to acquire the goods from shipping authorities. As for Mr A (Seller or Exporter) he receives payment at the very beginning from the Advising Bank when he presents the documents to the effect that he has shipped the goods to Mr B.
Drip Capital please take a note and release corrected video. Do remove faulty clips, to avoid confusion in viewers mind. Thanks,
It depends on the terms of the LC. In some, the goods must reach discharge port before payment is made
Thanks for the comments, I was also confused about Importer making payment to the Exporter.
Thanks for LC details
Helpful! Thanku!
thanks👐
Yes buyer can not pay directly
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