Made In China Talk  

Go Back   Made In China Talk > Import-Export Knowledge > Basics Knowledge of Import-Export
Directory Register FAQ Members List Calendar Mark Forums Read 中文




What is letter of Credit L/c ?


Reply
 
Thread Tools Display Modes
  #6  
Old 06-14-2008, 01:35 AM
KungFu KungFu is offline
Senior Member
 
Join Date: Jun 2008
Posts: 559
Feedback: (0)
Default What is letter of Credit L/c ?

LC is Letter of credit. It is a form of a cheque, it's a cheque that your seller prefers receive from you bank and it's guarantee rather than personally from you or your company. bank acts as the middle man in your transaction to safe guard you and your supplier. the bank will check if the documents along with the goods you suppler has sent are in perfect order, then only the bank will release the payment to you supplier.
It's simple. you need to go and meet up with Imports and exports division in your bank. they will have a set of forms to be filled. you will have to take the Proforma invoice which your supplier sent you for his payment. you present that to the bank along with the set of forms that the bank gave you to fill. Then the bank will prepare their set of documents and send to your suppliers bank for confirmation there is a LC opened for the supplier.
once your supplier sends you the goods and the set of documents directly to you which should include 3 sets of bill of lading,packing list,commercial invoice. you may have to take it to bank or directly to port where the good have arrived (Depends from country to country regulations on documentation) then double check with goods and your cleared and your bank will ask you suppliers bank to pay supplier.
Good luck!
Reply With Quote




  #7  
Old 10-31-2017, 08:17 PM
damponting44 damponting44 is online now
Senior Member
 
Join Date: Jan 2017
Posts: 264
Feedback: (0)
Default

A letter of credit is a letter from a bank ensuring that a purchaser's installment to a dealer will be gotten on time and for the right sum. If the purchaser can't make installment on the buy, the bank will be required to cover the full or remaining measure of the buy.
Reply With Quote
Reply



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


| Business Forum | Toronto Chinese

All times are GMT +9. The time now is 06:19 PM.


All rights reserved. Copyright 2007 Made In China Talk