In our last letter we just touched different types of letters of credit,the instruments that help recovery of export proceeds. Observe the details of each type of letter of credit and its weight and value explained in detail. The aspirants are advised to save these details; the same terminologies will be referred in our due correspondence. Read our CAREER GUIDANCE REGULARLY ,there are opportunities that you could speak to the sellers and buyers, when we publish their contact details.
For example, the bank might extend the letter of credit conditioned upon the beneficiary's providing documentation that the goods purchased with the line of credit have been shipped to the customer. The customer may use the letter of credit to assure the beneficiary that, if it satisfies the conditions set forth in the letter, it will be paid for any goods it sells and ships to the customer.
In simple terms, a letter of credit could be said to document a bank customer's line of credit, and any terms associated with its use of that line of credit. Letters of credit are most commonly used in association with long-distance and international commercial transactions.