Change is not just coming; change is here today, now. The impact of using electronic trade documents instead of hard copies of bills of lading, invoices, packing lists, and certificates to settle trade transactions via the Internet will be as profound to global trade finance as the containerization of cargo was to logistics.
Letters of Credit are an involved subject. Bankers spend lots of time studying the various types and rules and regulations. “But hold on” I hear you say. I thought this article was entitled ‘Demystified.’ Well, for the typical importer or exporter dealing in individual transactions, they can be quite straightforward.
Usance (or deferred) Letters of Credit are a specific type of LC payable at a predetermined time period. When Letters of Credit were first developed, there were a number of specific Letters… read more →
The rise in trade-based money laundering (TBML), combined with the enormous regulatory fines and ongoing scrutiny from various government agencies, has created a need for enhanced financial transparency, specifically where… read more →
Here at Trade Finance Global, we speak to many organizations and institutions regarding their Letters of Credit. From looking at possible modifications to (and variations of) existing Letters to the… read more →
Letters of Credit are a guarantee from a bank that a buyer’s payment to a seller will be received on time and for the correct amount. Specifically, if the buyer… read more →
What is the difference between a Bank Guarantee and a Letter of Credit? Bank Guarantees and Letters of Credit (LCs) are used in trade to carry out international transactions. LCs… read more →