Monday, April 15, 2013

Payment Methods: Letter Of Credit (Unconfirm, Sight)

  1. Exporter and Importer sign the purchase contract
  2. Importer requests for Letter of credit (LC) and release funds to its Bank
  3. Importer’s Bank Issue LC and sends it to the Exporter’s Bank
  4. Exporter’s Bank advises the LC the Exporter
  5. Exporter ships the goods to the Importer
  6. Exporter forwards shipping documents to its Bank
  7. Exporter’s Bank forwards shipping documents to the Importer’s Bank
  8. Importer’s Bank transfers the funds to the Exporter’s Bank
  9. Exporter’s Bank pays the Exporter
  10. Importer’s Bank release the shipping documents to the Importer
  11. Importer clears its goods using the shipping documents

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