Letter of Credit | How to Open a LC | Urdu | Types of LC | Global Business | Payment Procedure

Life cycle of LC
1. Types of Letters of Credit• Revocable• Irrevocable• Unconfirmed• Confirmed• Transferable• Assignment of Proceeds• Revolving• Standby
2. Export Letter of Credit Cycle 5. Product is Shipped 1. 1. Beneficiary Buyer & Seller Agree 2. ApplicantExporter/Seller 4. Application Importer/Buyer Letter of 6. Credit 2. Documents 8. Documents 10. 3. Letter of Credit 7. Documents Exporter’s Bank/ Importer’s Bank/ Advising Bank 9. Issuing Bank
3. Confirmed Letter of Credit Cycle 5. Product is Shipped 1. 1. Beneficiary 4. Buyer & Seller Agree 2. ApplicantExporter/Seller Confirmed Application Importer/Buyer 6. Letter of 2. Credit L/ C Documents me d 8. fir 3a. Documents on L/C .C Confirming Bank 10. 3a 3. Letter of Credit 7. Documents Exporter’s Bank/ Importer’s Bank/ Advising Bank/ 9. Issuing Bank Confirming Bank
4. TransferableLetter of Credit 3. Transferable LC 2. Transferable LC $30,000 Exporter/Seller $50,000 7. 8. Documents Documents & BL Seller/Exporters Bank & BL Advising Bank Manufacturer’s Transferring Bank Bank 9. $50,000 4. LC Importer’s Bank/$30,000 6. Received Issuing Bank Documents & BL 9. 10. Documents 1. LC $30,000 & BL Application Received Product 5. Product Shipped to Seller or directly to Importer Importer