INFORMATION CENTRE > letter of credit

Letter of Credit | INCO terms | Container dimensions | Conversion tables

FThis is provided only as an overview in which I use Local Bank as the bank
nearest the shipper, and Destination Bank as the bank in the consignees'
country.

Basically
Put into very basic terms, a letter of credit is a method of guaranteeing
that the shipper gets paid, and the purchaser gets a shipment - or at
least, this is what the intent is all about. The reality is not always
quite so well defined. The letter of credit is only a good method of
providing payment for freight - it is not a solid guarantee of receiving
full payment, or that what was ordered is what gets shipped!

Read more about the Letter of Credit?
(Right click to download Word document)