L/C
Post 1 of 4
Hi everyone, I am pretty new to this.
I understand that a lot of traders uses L/C as payment method very often.
Unfortunately for me (a new trader) I am not familiar with the term.
Can someone explain to me what L/C stands for, what it means and where can I go about reading more information about it.
Thank you in advance.
Best regards!
I understand that a lot of traders uses L/C as payment method very often.
Unfortunately for me (a new trader) I am not familiar with the term.
Can someone explain to me what L/C stands for, what it means and where can I go about reading more information about it.
Thank you in advance.
Best regards!
Award 10 MVPs (
What's this?
)for the best answer.
08 Jan 2009 23:33
Post 2 of 4
Quoting from [coolhit]:you will get a zillion result. Just google it!!!!!!!!
Hi everyone, I am pretty new to this.
I understand that a lot of traders uses L/C as payment method very often.
Unfortunately for me (a new trader) I am not familiar with the term.
Can someone explain to me what L/C stands for, what it means and where can I go about reading more information about it.
Thank you in advance.
Best regards!
09 Jan 2009 10:45
Post 3 of 4
L/C means Letter of Credit. It is a document in which your bank gives a guarantee that it will pay a certain amount of money upon the delivery of certain conditions, or presentation of certain documents.
In practice this means, for example, that you order some goods, you ask your bank for an L/C with the price of the order, and when the supplier presents some proof of their delivery, like the Bill of Lading of the forwarding company, he can go to his own bank and get the amount of the L/C. It is a payment method that is reasonably safe for both supplier and buyer. Inform yourself at your bank on more details.
c[ ]
In practice this means, for example, that you order some goods, you ask your bank for an L/C with the price of the order, and when the supplier presents some proof of their delivery, like the Bill of Lading of the forwarding company, he can go to his own bank and get the amount of the L/C. It is a payment method that is reasonably safe for both supplier and buyer. Inform yourself at your bank on more details.
c[ ]
12 Jan 2009 12:26
Post 4 of 4
Thanks for the answer. I managed to read up a little about L/C and there was a diagram that showed how the whole process of L/C works. ![[em20]](http://img.alibaba.com/images/eng/style/icon/emoticons_victory.gif)
Best Regards.
Best Regards.
16 Jan 2009 20:01
Page 1 of 1