L/C
Advantages/Disavantages
Sellers
Can have problems
discrepancies documents presented
can cause issuing bank cancel L/C
try modify terms of L/C
interruption in operations
unacceptable costs
impossible delivery times
Buyer
no payment before
can obtain better terms & prices
experts support
reduce risks
High degree assurance
Goods will be delivered
documentations
Draft or Bill Exchange(Negotiable instrument to be given to the bank in order to get paid)
Consular Invoice or Legalized Commercial Documents
Health Certificate of Phytosanitary Certification
Insurance Certificate (proof of Insurance)
Inspection Certificate (proof of quality)
Certificate of Origin (proof of origin)
Packing List (proof of packing)
Bill of Landing (proof of shipment)
Commercial Invoice (proof value)
OWN OPINION
More expensive than other methods
Very secure method payment
BENEFICARY
DEFINITION
offers protection
seller
buyer
the issuing bank irrevocably
promises to pay the seller
payment mechanism
