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DOCUMENTARY CREDIT - Coggle Diagram
DOCUMENTARY CREDIT
DOCUMENTARY CREDIT
are involved 4 parties
importer
exporter
importer's bank
exporter bank
safe metod
of payment
but
used seller don't trast buyer
is very expensive
guarantees seller and buyer
use document
Letter of credit
L/C
bank guarantees to pay
The Bill of Exchange
Shipping Documents
Procedure
bank importer open credit favor exporter
bnak importe sends L/C
exporter confirms L/C
exporte ships goods and sents documets
The importer’s bank checks the documents
The importer receives the draft and pay