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Deferred LC is very usefull for both importers and exporters.
1-Importer does not hav to pay in-advance when uses deferred lc
2-but exporter guarantees that he will get the payment in a certain time after shipment and also if he wants he can discount in on the same day or on any days when the LC is booked.
3- deferred LC helps to the buyer who does not have cash but has credit in his bank
4- deferred LC helps to the seller, so he does not have to look for a buyer who has only cash money.He can discount the LC with a very low cost anytime.
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∙ 14y ago
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What is difference between inward LC and outward LC?
An outward LC is opened on behalf of a customer who wishes to import or buy goods. An Inward LC is opened by a foreign bank in favor of the exporter.
How can you open a LC for Import in Bangladesh?
at first open your business place, than arrange ted licence. then apply to LC for export or Import.
What is deferred payment price?
A deferred payment price may be different from a price of cash and carry. To pay later is to defer and is usually more expensive.
What is a Arrangement for deferred payment for goods and services?
credit
What is the difference between LC and DA?
DA mean documents against acceptance, where company give acceptance to pay their liabilities on due date, but he can pay remit the DA before its due date , but in case of Letter of Credit, UCP are not allowed to pay the LC liabilities before its due date. Thanks Anup Das
What is the difference between usance and deferred payment LC?
No difference as both are alternate names of each other
WHEN IS LC REQUIRED?
What do you mean by the term LC and when it is used
Where to used LC or SC connectors?
LC full form Lucent connector
Can you discounting a lc non transferable?
Discounting is a term used for the actual drawing/negotiation that takes place under an Lc (Letter of Credit). The credit conform (accepted) documents/draft are due for deferred payment and the presentor does not want to wait for its funds till maturity date. Whether the LC is transferable or not is of no importance here. The LC itself should be 'discountable' (it is safer to have this in special instructions of the LC terms). The discounting then depends on the parties concerned, and the price for discounting (discounting rate/Libor/Airbor+spread) and the willingness of the bank that should discount. Discount can be performed with or without recourse.
What is a deferred driver in Massachusetts?
A deferred driver is a listed driver who has a policy elsewhere and therefore is not used in the rating of the policy from which they are listed as deferred.
What is negotiation of documents under LC under reserve?
The documents presented under a documentary credit are scrutinized as per the International standards of scrutiny and negotiated if they strictly comply with the LC terms. This is called a clean negotiation. On the other hand if the documents do not comply with the LC terms and discrepancies are found, the negotiating bank may still opt to give value under the LC by paying or incurring a deferred payment obligation as per LC provided the beneficiary undertakes to indemnify the negotiating bank in the event of rejection by the LC opening Bank. This is technically called a payment under reserve. The Reserve will be lifted on acceptance of discrepancies by the LC opening Bank.
Why irrevocable LC used instead of revocable?
Irrevocable LC is the safest for the exporters since the bearer of this LC will get the money for sure unlike revocable LC where every party must be involved to get it settled in case of any issues.
What is Deferred int expenses?
Deferred int expenses is a term used in accounting for business and finance. It is used to refer to the interest on loans and payments, which is considered an expense that is deferred, or expected to be paid at a later date.
How do you spell Differed medical term?
"Deferred" is often used in medical terms, as in "the vaginal exam was deferred."
What does lc mean in os symbols?
In OS symbols, "lc" typically represents the line command, which is used to display the line count of a file. The "lc" command is commonly used in Unix-like operating systems to quickly determine the number of lines in a text file.
What does LC stand for in LC connector?
LC stands for Lucent Connectors
Murhaba lc and cash lc difference?
I guess the question itself is written in a wrong way, i guess that the question means Murabaha not murahba since there is nothing called "murahba LC", but there is "Murabaha LC" or to be adequate "LC Murabaha" This is a sharia compliant product used in importing goods through islamic banks or financing companies. It is differ from Cash LC that the later requires the LC amount to be ready with the importer while the other option Murabaha will be financed by the Bank
