Letter Of Credit Definition In Bangla. It can be a vital part of mitigating a seller's risk of payment in either international trade or domestic business. Confirmed letter of credit l/c.
This type of lc provides the fastest mode of… It is a way of reducing the payment risks associated with the movement of goods. A letter of credit, also known as a documentary credit or bankers commercial credit, or letter of undertaking, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.
This type of lc provides the fastest mode of…
Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. An irrevocable letter of credit from the issuing bank insures the beneficiary that if the required documents are presented and the terms and conditions are complied with, payment will be made. It can be a vital part of mitigating a seller's risk of payment in either international trade or domestic business. It is irrevocable because the letter of credit cannot be modified unless all parties agree to the modifications.