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« on: July 12, 2018, 06:40:15 pm »

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When a buyer is new to a foreign seller Cheap Menelik Watson Jersey , latter will demand some kind of assurance for the payment of the goods sold by him to a new customer. In order to assure the exporter, a letter guaranteeing payment on delivery of goods as per the terms of agreement on quantity, quality Cheap Shaquil Barrett Jersey , documentation and shipment instructions is issued by the bank of the buyer to the bank of the seller termed as advising bank. On receipt of a letter of credit or LC, advising bank acknowledges that it has received such a letter to the buyer without owning any responsibility. If the LC is a confirmed one, seller’s bank will authenticate the same after necessary checking. It will express its acceptance to be responsible for making payment to the seller by collecting the money from buyer’s bank on supply of goods as per the terms of instructions as agreed upon. By giving confirmation to LC Cheap Shelby Harris Jersey , bank of the seller becomes equally responsible for making payment as per LC.

standby letter of credit or SBLC, as it is popularly known, is issued by a bank to prove the creditworthiness of a buyer. It is issued by a bank on behalf of a client as last resort payment. If a client breaches his contractual obligation of payments to a third party Cheap Justin Simmons Jersey , it will be the responsibility of the bank to make payments on behalf of the defaulting client. It is one of the most convenient and cost effective ways for providing financial protection to third parties.

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