{"id":3738,"date":"2021-02-25T14:26:14","date_gmt":"2021-02-25T14:26:14","guid":{"rendered":"https:\/\/afluxcoin.com\/26\/letter-of-credit%e2%80%8a-%e2%80%8afrequently-asked-questions-answers\/"},"modified":"2021-02-25T14:26:14","modified_gmt":"2021-02-25T14:26:14","slug":"letter-of-credit%e2%80%8a-%e2%80%8afrequently-asked-questions-answers","status":"publish","type":"post","link":"https:\/\/afluxcoin.com\/fr\/26\/letter-of-credit%e2%80%8a-%e2%80%8afrequently-asked-questions-answers\/","title":{"rendered":"Letter of Credit\u200a\u2014\u200aFrequently Asked Questions &amp; Answers"},"content":{"rendered":"<p>LC Frequently Asked Questions &amp; AnswersHere are some of the most commonly asked questions and answers on letters of credit:1. What is a Letter of Credit?A letter of credit is a legal written document issued by the importer\/buyer\u2019s bank in the favor of the exporter\/seller to assure that the seller would be paid on-time by the buyer for their delivered goods &amp; services. In the event of buyer defaults in fulfilling the terms &amp; conditions of the contract or paying a certain amount in an ongoing trade transaction, the issuing bank will make the payment to the exporter. To put it in simple words, it serves as a commitment of guaranteed payment from the buyer to the seller.2. Types of Letters Of Credit1. Standby Letter of Credit (SBLC)2. Credit on Sight LC3. Time credit LC4. Revocable and Irrevocable LC5. Transferable and non-transferable LC6. Usance Letter of Credit7. Confirmed and Unconfirmed LC8. Back to Back LC9. Red Clause LC10. Green Clause LC11. Commercial Letter of Credit12. Export\/Import LC13. Revolving Bank Credit Letter14. Traveler\u2019s Letter of Credit15. Time Credit\/Acceptance Credit3. Is the LC and Bank Guarantee the same?A Letter of credit is a legal guarantee from a bank or financial institution regarding on-time payment to the exporter in the event of the buyer\u2019s failure to perform terms &amp; conditions or pay a certain amount for delivered goods &amp; services.A bank guarantee is a commercial instrument where the bank only pays the amount if the buyer does not fulfill the contractual obligations mentioned in the contract. To know more check out our detailed blog on \u201c What is the difference between bank guarantee and letter of credit?\u201d4. How does a Letter of Credit work?1. The applicant or buyer\/importer applies to the issuing bank to issue an documentary credit (LC) in favor of the\u2026<\/p>","protected":false},"excerpt":{"rendered":"<p>Foire aux questions et r\u00e9ponses LCVoici quelques-unes des questions et r\u00e9ponses les plus fr\u00e9quemment pos\u00e9es sur les lettres de cr\u00e9dit:1. Qu&#039;est-ce qu&#039;une lettre de cr\u00e9dit?A<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/3738"}],"collection":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/comments?post=3738"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/3738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/media?parent=3738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/categories?post=3738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/tags?post=3738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}