Create the Perfect Bill Letter Format for Shipping with airSlate SignNow

Bill letter format for Shipping

[Music] trust between the buyer and seller is vital in international trade a letter of credit or lc is an important document in international trade it enables trust between buyers and sellers across different countries an lc is issued by a bank on the buyer's behalf and guarantees that the seller will receive payment after he completes his end of the transaction if the buyer is unable to pay the issuing bank is liable to pay the seller why is a letter of credit required the seller is ensured that he will receive funds whereas the buyer gets to demonstrate his credit worthiness and negotiate longer payment terms to understand how a letter of credit works let's take an example mr a an indian exporter enters into a contract for the sale of rice with mr b a u.s importer to assure mr a of timely payment mr b goes to his bank to open an lc the bank is also called an issuing bank or opening bank the issuing bank sends the lc to mr a's bank also known as the advising bank after reviewing the terms the advising bank confirms the receipt of lc to mr a mr a will then ship the goods and send the shipment related documents to the advising bank who further sends the documents to the issuing bank the issuing bank verifies the documents and sends to mr b mr b then makes the payment to mr a against the shipment of goods as per their agreement the lc is valid till the payment is processed to know more about lc and its types please read our article the link is mentioned in the description don't forget to subscribe to our channel for latest updates on international trade and exports