Introduction To gain clarity about what happens when a lodgement letter of credit is not honored, you must first understand the basic definition of a lodgement letter of credit. This will allow you to grasp its importance and the consequences that come with non-honoring.
Understanding Postshipment Finance Funding Post-shipment finance funding involves providing financial assistance to businesses after the shipment of goods. To make things clear, we will refer to this type of funding as ‘Financing After Shipment.’ Financing After Shipment can be acquired from different sources, such
Understanding Preshipment Finance Preshipment finance refers to the credit offered to a seller before shipping goods to a buyer who has placed an order. This credit is used for covering expenses such as labor, raw material, and packaging that are incurred while preparing goods
Understanding Postshipment Finance Postshipment finance refers to financial services that assist exporters in managing their cash flow after shipment. With the help of this finance, exporters can receive payment for their goods soon after they are shipped, which reduces their risk of non-payment or
What is a Promissory Note? A promissory note is a written commitment between two parties, wherein the borrower promises to repay the lender a predetermined amount of money at a specific date or on-demand. It is usually unsecured and can be used as evidence
Introduction to Lodgement Letter of Credit Lodgement Letter of Credit- An Overview A Lodgement Letter of Credit is a financial instrument used in international trade to ensure payment obligations between the buyer and seller. The letter serves as a guarantee that the buyer will
Introduction to Letter of Credit Transaction The process of international trade often includes a Letter of Credit transaction. In this type of transaction, the buyer’s bank guarantees payment to the seller upon the fulfillment of certain predetermined conditions. One aspect that needs to be
Understanding Promissory Note A paramount legal document in lending and borrowing money is the promissory note. It outlines the details of repayment, including payment amount, date, interest rate and terms. This Note avoids confusion between borrowers and lenders on debt settlement. The Promissory Note
What is a letter of credit? A letter of credit is a financial document that acts as a guarantee between two parties, typically a buyer and a seller engaged in an international trade transaction. It is a commitment by the importer’s bank, to pay
Introduction to preshipment finance Preshipment finance aims to offer exporters economic assistance for procuring raw materials and processing goods before shipping them. Required documents may include commercial invoice, packing list, letter of credit, purchase order, insurance certificate and bill of lading. Providing these documents
