{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Letter of Credit Flowchart

Letter of Credit Flowchart - When payment#5 is due from...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
LETTER OF CREDIT FLOWCHART Definition: Letters of Credit have been the cornerstone of international trade since the early 1900s. It is a written instrument provided by a bank (Issuing Bank) at the request of its customer (Applicant/Importer) whereby the Issuing Bank promises to pay the Beneficiary/Exporter for goods or services once the Beneficiary/Exporter provides all required documents and meets all other terms and conditions set forth in the Letter of Credit. Final Payment from Issuing Bank to Advising/Confirming Bank:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: When payment (#5) is due from Furniture Brands International, Inc. (“FBI”), according to the terms of the Letter of Credit, to the Beneficiary/Exporter, the Issuing Bank advances the payment under FBI’s $550,000,000 Revolving Line of Credit and then wires the money to the Advising/Confirming Bank. Once this payment is received by the Advising/Confirming Bank, this bank deposits the payment to the Beneficiary/Exporter’s deposit account. The sale is now complete....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online