JAIIB Principles and Practices of banking: Letter of Credit and its type and how LC works in detail. Watch till end for a complete study.
A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade
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Commercial Letter of Credit
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Confirmed and Unconfirmed Letter of Credit
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Revolving Letter of Credit
Sight Letter of Credit
Red clause Letter of Credit
Irrevocable Letter of Credit
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