FAQs

Find out the most frequently asked questions in 2021 about trade, receivables and supply chain finance. We’ve teamed up with industry experts to answer your most popular and important questions around international trade and finance. Welcome to our FAQ hub by Trade Finance Global.

Definition of Usance or Deferred Letter of Credit (LC Guide)

What is the difference between a Bank Guarantee and a Letter of Credit?

Bank Guarantee vs Letter of Credit Letters of Credit reduce the risks of not getting paid after the product has been delivered An LC is a promise by a financial… read more →

James SinclairArticles, Bonds, Guarantees and Letters of Credit, Credit Insurance, Currency Exposure and Risk Management, FAQs, Letters of Credit, Structured Terms of Payment
Credit Card

What is the discrepancy of the words ‘drawn under’ in relation to an LC?

Where all documents are to be marked drawn under LC number 123 dated 01.01.2015 and the documents presented mentions ‘LC number 123 dated 01.01.2015.’ How is clause 47A applied? This… read more →

James SinclairArticles, Bonds, Guarantees and Letters of Credit, Currency Exposure and Risk Management, FAQs
ucp 11

UCP600: Is it the wording of the credit that should be followed or something else?

At Trade Finance Global, we’re regularly asked what wording to follow in a trade finance transaction. Such guidance can be found in the UCP 600, which is the Uniform Customs… read more →

James SinclairArticles, Bonds, Guarantees and Letters of Credit, FAQs, Letters of Credit
consultation document

What does it mean when it says ‘documents accepted as presented’?

This refers to a Letter of Credit when the words “documents acceptable as presented” are used. Typically this means that only 3 elements will be examined: At least one of… read more →

James SinclairArticles, Bonds, Guarantees and Letters of Credit, FAQs
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