Virginiabetts

In relation to the Debt Collection payment terms:

- LC payable per vista is chargeable immediately after the signing contract and LC user can activate it in a very short period, as soon as they meet the conditions specified in the contract.

- LC with deferred payment becomes chargeable after agreed deadline. This is the kind of LC that are quite often used in a larger trading, because gives enough time to the buyer to implement the sale of goods, and at the same time allows to the seller to offer good payment conditions to his reliable business partners without any risk. There are some other types of LC: - Confirmed LC, which creates even stronger guarantees for payment. That means that sellers commercial bank should confirm the acceptance of Debt Collection issued from particular bank. As in any business, banks are also subject of specific categorization and there is an A-list of reliable banks, and lists with lower rank. This is important only in large business arrangements. - Unconfirmed LC means that any higher confirmations after the LC issuing are not requested. - Transferable LC - That means that is allowed to the seller - LC user, to sell rights arising from LC on the market, before maturity date. This clause is usual in LC that is issued with postponed payment term. - Un-transferable LC - means that not all rights upon Debt Collection can be transferred to the third party. In international trade, LC is usually combination of several mentioned characteristics. Most LC’s are issued with deferred payment term, irrevocable, unconfirmed and transferable. It is an optimal combination of criteria, which provides good conditions both to the buyer and to the seller.