Types Of Letter Of Credit Ppt. There are various types of letter of credit (lc) prevails in the trade transactions. Each has different features and some are more secure than others.
Types of letter of credit. The bank issues lc both within its own capabilities and within the cooperation of the world well known 1st class banks. • it is a guarantee issued in format of lc by issuing bank • e.
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This type of letter of credit is generally opened for suppliers. Commercial letter of credit is the correct type of credit that should be used when an importer pays transaction amount directly to an exporter via letter of credit. The stand by letter of credit • is not at all documentary credit. This is a type of letter of credit which is like a performance bond or guarantee issued by the bank in the form of the lc.