Letter of Credit is one of the most popular and more secured of method of payment in recent times as compared to other methods of payment. A Letter of Credit refers to the documents representing the goods and not the goods themselves. Banks are not in the business of examining the goods on behalf of the customers. Typical documents, which are required includes commercial invoice, transport document such as Bill of lading or Airway bill, an insurance documents etc. A commercial letter of credit is a contractual agreement between a bank issuing bank , on behalf of one of its customers buyer , authorizing another bank advising or confirming bank , to make payment to the beneficiary seller. The issuing bank, on the application of its customer buyer , opens the letter of credit, and makes a commitment with the buyer to honor the credit on the presentation of the documents, conforming to the terms and conditions of the credit, by the beneficiary.
How Letters of Credit Work: Definition and Examples
Direct Imports Case Study. Forest Product Company. Fortune Chemical Company. Home Depot Case Study. Bar-B-Q Case Study. Trade Technologies Case Studies. This paper examines how employing existing technology within the current infrastructure can help reduce costs and delays and positively impact working capital.
Harvard Case Studies. In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study.
Ivey Case Studies. The problem statement refer to the concise description of the issues that needs to be addressed. It identifies the issues or gap between the current and desired type of the organization, and thus requires to be stated in order for the management to look for change.