What is it Letter of Credit?

Based on the recipient's request and instructions of the bank, up to a certain amount, in exchange for certain documents and the prescribed conditions are met, provided
seller will pay, organized by vendor policies against a seller would accept and participate in bank guarantees
the bank's vendor tanımlanabilir.Akreditif (to the exporter) in the form of a letter of commitment that an alarm is issued.
In other words;
Letters of credit, goods or services have been met is installed is attached to the documents showing the terms to be present within the specified period of time, provided
a certain amount of goods or services is the responsibility of the exporter paid to a bank about.

Why Letter Of Credit?

Letters of credit as a means to show respect, to verify the meaning of the "accredites" word comes from. I do not know each other
creator of the trust factor and exporters thalatçı a bank is emerging as a commitment.

Letters of credit, international trade, the following names to be remembered.
"Documentary Credit"
"Letter of Credit"
"Documentary Letter of Credit"
"Commercial Letter of Credit"

As can be understood from the definition that a letter of credit is a conditional bank guarantee. Exporters to the company if the goods or services meet the letter of credit terms
undertake the payment of the cost will be. Therefore, the letter of credit is a credit instrument, payment tool.
This is only a form of payment such as the buying and selling goods in trade, but also the fulfillment of a specific service
process is also used in the subject field.

Exporters May Request To Use Letters Of Credit In The Following Cases:

* Importer of the trust would not pay on time,
* Importers and the financial situation does not have enough information about the commercial credibility,
* Received as guarantee letters of credit and bank financing to provide.

Who And What Is Specified By The Rules Of The Letter Of Credit?

In international trade after the Second World War letters of credit usage under a single system yaygınlaşmıştır.Tüm world gathered, the rules and practice of land MTO International Chamber of Commerce International Chamber of Commerce that is determined by the ICC.

Benefits And Disadvantages Of Letters of Credit Between The Parties?

What Are The Considerations Letter Of Credit ?

Our country in foreign trade payment or the recipient against a general ignorance that is overconfident. This is the natural result of the
against our company and property buyers to pay the cost of missing cases are emerging, such as not paying.

* When the contract between Seller and Buyer, the seller by the buyer exactly what kind of documents have been asked to know is required.
Preparing the required documents may be additional costs and delays.
* Vendor to fulfill the terms of the letter of credit letter of credit and term-sure should be sufficient.
* Vendor name and address in all processes should make sure that it is spelled correctly. Documents will be reported to vendor in the letter of credit when it
attention should
* Recipient's partial loading (partial shipment) does not accept-must know.
* Contract before vendor needs to know how to do the installation. Installations transfer operation is usually done, especially
transfer of the ship do not do it-is unknown. In this case the letter of credit allow the transfer must be carefully controlled and not-ver.
* Letters will be sent in and delivery of goods, the date, as the understanding of the vendor and purchaser must be.
* Vendor to him complain when all the details of the letter of credit must be checked. Not comply with the terms of the contract subject to correction
changes must be requested. Changes made after the export is not valid.