1. LC Confirmation and LC Discounting
Popular LC Confirmation and LC Discounting Service Provider
By: NumeroUno
Contact:
Email: info@numerouno.net.in
Website:LC Confirmationand
LC Discounting
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2. LC Confirmation and LC Discounting Content
Introduction LC Confirmation
How that works and work flow
Function, Feature and Process
Introduction LC Discounting
Special Hints for exporter
Procedure sequences
Thanking You
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4. How that works and work flow
Whennegotiatingthetermsofsale,thevendorwouldneedaletterofcreditrequestingtheadvisingbanktofeatureitsconfirmation.TheclientincludesthisrequestoncesubmittingtheapplyingforLCConfirmationtohisbank.Inmostinstancestheissuedcreditstates:"Pleaseadvisebeneficiaryaddingyourconfirmation"orwordstosimilarresult.Note:hismaybearequest,notademand.TheadvisingbankforvariedreasonscoulddeclinetofeatureitsconfirmationandeasilyadvisetheLCConfirmationwhilenotengagementonitshalf.
Onceaddingconfirmation,typicallanguageenclosedwithintheletterwouldbe, “Weherewithensurethiscreditandtherebyunderneathtakethateveryonedraftsdrawnunder,andintractcompliancewiththetermsdeclaredinthataregoingtobepunctuallyhonoredonpresentationanddeliveryofdocumentsassuchas,ifbestowed,atthisworkplaceonorbeforetheterminationdate.”
Itshouldtobenotedthatletterofcredittransactionsinvolvesurerisks,withlegalrisks,restrictiveandsovereignrisks,andfraudrisks.Riskstotheindividualembodylateorearlycargo,qualityandLCDiscounting.Merchandisecouldalsobebrokenintransitorshort-shipped.It’svitalthatsellersreviewthenecessitiesandgiftalldocumentsontime.
Officialdocumentsconjointlyembodyorigincertificates,embassygroupaction, licensees,andscrutinycertificates.Finally,insurancedocumentswhichwillbebestowedembodycertificatesandinsurancepolicies.
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5. Function, Feature and Process
Functions:Enterprisethecreditrisksoftheissuebankforthebourgeoisthusonfacilitateexporterreceivepaymentspriortouponobligingpresentation;itareoftendividedinto2forms:openconfirmationandsilentconfirmation.
Features:Reductionofrisksandaccelerationofthecapitalturnover: ConfirmationofL/Cwillfacilitateexportersstoptherisksfromtheissuebank,thecountryriskofissuebankandalsotheexchangemanagementrisks. Doubleguarantee:excepttheconditionalpaymententerprisecreatedbytheissuebank,theexporterswillgetextraconditionalpaymententerprisefrombankorbusinessconsultants,puttingtheexportersbeneathdoublepaymentguarantee.Paymentassortmentguarantee:TheexportersuponpresentationthatfitstheLCConfirmationneedsandapprovaloftheBankwillgainthenon-recoursepaymentsorpaymentsguarantees.
Process:Banksprovidesinsurrectionupontheissuebeneficiaryonceadvisingtheletterofcredit;LCConfirmationtheexporterpresentstheobligingdocumentstoBankandBankmakesnon-recoursepaymentsorirreversiblepaymentsguaranteestotheexporteronceexaminationandapproval;Bankmailsthedocumentstotheforeignissuebanktosaycompensationandcanconfirmthepaymentoncetheforeignpaymentreceived.
Charges:2‰oftheconfirmedquantity,withminimumofchargedquarterly. Thefeecanrisesubjecttothedegreeofrisksoftherelevantcountriesorbanks.
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