Viewing entries tagged with 'document'

Letter of credit

Posted by on 16 December 2014 | Comments

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As the shipping of foreign goods to another country can take some time, importers have to ensure the exporters are paid before the goods arrive. This is where the Letter of Credit comes in. Sometimes known as ‘documentary credit’, this letter acts as a guarantee from the bank that they will pay the seller on behalf of the buyer the agreed amount of money within a specified timeframe.

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