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 Forums Index>> Payment Modes & Finance Issues>> What is Letter of Credit (L/C) 60 days?
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Author
TRISHAKTI CREATIVE SERVICES-N.RAMADEVI

Mrs. RAMADEVI NAGIREDDI
PROPRIETOR
TRISHAKTI CREATIVE SERVICES
Yellamanchili, India
Free Member
Joined :03/30/2008
No of Topics Posted : 2
Reply/Comments : 0
TOPIC : What is Letter of Credit (L/C) 60 days?

Can anyone please explain me what L/C-60 days means?


Author
Posted on 11 March 2009 at 06:19:00 [Message #2021 ]
Bestco Trading Co., Ltd.-escapechute

Mr. Arthur Ho
Bestco Trading Co., Ltd.
Port Coquitlam, Canada
Free Member
Joined :03/03/2008
No of Topics Posted : 0
Reply/Comments : 2
Re: What is Letter of Credit (L/C) 60 days?

In general terms, it means you only receive payment 60 days after submitted collection/negotiate document to your bank, provided that no discrepancy. Be sure ask for confirmed and irrevocable letter of credit.


 

Author
Posted on 11 March 2009 at 12:18:00 [Message #2023 ]
Prelude Sys India Pvt. Ltd.-autouser_2206381

Mr. Govindarajan Gopalakrishnan
manager
Prelude Sys India Pvt. Ltd.
Chennai, India
Free Member
Joined :03/11/2009
No of Topics Posted : 0
Reply/Comments : 1
Re: What is Letter of Credit (L/C) 60 days?

Irrevocable at sight letter of credit is the best one for payment terms.But the conditions irrevocable/ revocable & transferable/ confirmed all are defined in L/C terms. At times the buyers open sight L/C with 30,60 and 90days(anyone period) as DA ( documents against acceptance) terms. After accepting the documents for payment in thier Bank ,get the BL(Bill of Lading) for clearing the goods:after the said period they will pay the amount to the Bank. and clear the goods: Take the goods and sell and pay the money.

But in practical session the goods arrives before the said period say 45 days , so the BL is given by the bank after accepting FORM A1 from the Importer as the guarantee for payment


 

Author
Posted on 15 March 2009 at 15:59:00 [Message #2026 ]
Raj Polymers-prashagarwal

Mr. Prashant Agarwal
Proprietor
Raj Polymers
Delhi, India
Free Member
Joined :07/17/2007
No of Topics Posted : 0
Reply/Comments : 1
Re: What is Letter of Credit (L/C) 60 days?

Dear Madam,

As must be known to you that LC (Letter of Credit) is one of the most prominent instrument of payment in international business, wherein by an LC the issuing bank (buyer's bank) is guaranteeing the payment to the beneficiary bank (seller's bank) .

LC 60 days is an instrument wherein the seller allows the buyer a credit of 60 days, normally from the B/L date, to make the payment to the bank. In this case, he can obtain the original shipping document from the bank on his acceptance and can get the physical delivery of the material. The buyer is then suposed to pay for the consignment at a decided maturity date which is 60 days after the B/L Date.

There can be a variety of instruments like this such as LC 30 days, LC 90 days, LC 120 days & LC 180 days. The seller if requires the payment early can get the LC discounted from the bank at the offered interest rates.



 

 

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