Why Reimbursement is Safer?
Post 1 of 2
Hi all,
Some L/Cs carry clauses that say that payment under LC will be made by remittances of funds accoridng to the instructions of negotiating/paying bank upon receipt of credit confirming docs whereas in some LCs negotiating/paying bank is authorized to claim reimbursement from reimbursing bank nominated in LC by issuing bank.
My question is, why reimbursement is considered more safe payment option as compared to remittance.
curious spider man
Some L/Cs carry clauses that say that payment under LC will be made by remittances of funds accoridng to the instructions of negotiating/paying bank upon receipt of credit confirming docs whereas in some LCs negotiating/paying bank is authorized to claim reimbursement from reimbursing bank nominated in LC by issuing bank.
My question is, why reimbursement is considered more safe payment option as compared to remittance.
curious spider man
20 Oct 2007 08:50
Post 2 of 2
Replying to [spider man]:
The second option is ALWAYS safer - take my word for it.
Better still, if the reimbursing bank is in a third country, or at least a country that is not the country of the LC issuing bank. Reduces "country risks".
The second option is ALWAYS safer - take my word for it.
Better still, if the reimbursing bank is in a third country, or at least a country that is not the country of the LC issuing bank. Reduces "country risks".
24 Oct 2007 01:59
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