Understanding the Letter of Credit while moving

1. Bixmove packers and movers Call us :8867247247 mail us: info@bixmove.com Visit us: https://bixmove.com/

2. Understanding the Letter of Credit while moving A letter of credit is a guarantee of the buyer to the seller about the payment that has to be made. The basic structure of the Letter of Credit consists of four elements: Applicant (the buyer or the importer of goods), Beneficiary (the seller or the exporter), Issuing Bank (lends its guarantee or credit to the transaction), and the Negotiating Bank (beneficiary's bank). The letter of credit assumes that certain conditions would be met by the client or the buyer for the payment in question. This thing may be arranged by the customer (buyer, client) for the bill amount to the seller (beneficiary; in this case, the transport company) for the services rendered. The payment is expected to be made on time. In cases there is a delay, the bank makes the payment of the balance amount on behalf of the buyer. Banks collect some percentage of the amount in the transaction as a fee. This fee depends on the amount requested for the deal in the letter of credit. This is significant to note here that the sales agreement between a buyer and seller is not a part of the credit letter. The letter of credit may only use the information in the contract. What does the LOC contain? It contains information about the agreement between the buyer (client) and the seller (Movers and packers). The deal includes charges for the move, the quantity of the goods to be transported and other matters regarding the time and distance for the shift.

3. 1. Sight Credit or Sight Letter of Credit 2. Acceptance Credit or Time Credit This thing is a transaction that is done immediately upon presentation of valid documents. The needed funds can be taken right away. This document specifies the payments that need to be made for goods and services. For example, if a particular company of packersand movers Bangalorehave offered to move your goods from Delhi to Mumbai, the LOC will give the details of how much is to be paid and when it is to be done. It is a kind of agreement. In this case, the bills have to be presented and honored on their respective due dates. For example, in some cases, the purchase and the payment may take place on the same day. In other cases, the payment may be made after some time. This last period is called the usance for sale. The buyer makes the payment on the stipulated date of the LC.

4. 3. Revocable and Irrevocable Credit 4. Confirmed Credit Revocable credit is where the terms and conditions can be changed or even cancelled without giving any prior notice to or getting the consent of the beneficiary. The cancellation can be made without any notice. A permanent credit is just the opposite where the terms and conditions cannot be changed or amended.  Letters of Credit usually are irrevocable. This type of credit is that one where a different bank confirms the loan, i.e., a bank other than the issuing bank. In this kind of deal, the beneficiary will have a firm undertaking from both the issuing as well as the confirming bank. The bank that partners as a confirming bank, become a part of the contract of the letter of credit.

5. 5. Restricted Letter of Credit 6. Back to Back Letter of Credit In this case, a specific bank takes on the task to accept, pay, and negotiate the LC. In this kind of LC, there is a second LC and second beneficiary involved under the security of the LC that is made originally.

6. Bixmove packers and movers

7. Bixmove packers and movers Call US: 8867247247 mail us: info@bixmove.com Visit US: https://bixmove.com/