Dear Sir

A customer wants to buy my products using this kind of payment

Bankers Usance LC Payable at Sigth

What does that means?

Will we recieve the money at sigth? What is the diference of Lc at sigth?

Do we need to pay some interesting to the Bank?

Please help me out

Thanks in advance

Regards

Fernando

 

Quoting from [Fernando Lima]:

Dear Sir

A customer wants to buy my products using this kind of payment

Bankers Usance LC Payable at Sigth

What does that means?

Will we recieve the money at sigth? What is the diference of Lc at sigth?

Do we need to pay some interesting to the Bank?

Please help me out

Thanks in advance

Regards

Fernando

 

Lc at sigth or LC at sight? Would you please make sure of this?

Usance letter of credit means 'acceptance' or 'deferred payment'. It cannot be both acceptance or deferred and sight. However, a letter of credit may be made available with mixed payment that is, some percentage at sight and some percentage upon acceptance.

A sight LC is normally (but not necessary) means negotiation letter of credit with a draft drawn at sight.

But a sight letter of credit, literally means a letter of credit available at sight where draft is not required to be drawn on the issuing bank. In this case, a nominated bank (paying bank) will be specifically named.

In the case of negotiation letter of credit with a draft drawn at sight, a nominated bank need not necessary be named as the letter of credit can be made 'freely negotiable'.

To differentiate these two different letter of credits, refer to '...available with...by...' field in SWIFT format.

You should confirm with the other party what exactly he wants.

Zealotwan.
Pls, kindly enlighten me on this in other to avoid scam.
I just want to be exporting goods but what and what do i need to collect from my buyers to savegard my transaction, i mean my money.

Thanks in advance.