what is the meaning of LETTER OF CREDIT?
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Answer / naresh.l
Letter of credit is opened by a bank in favor of it's
customer undertaking the responsibility to pay the supplier
or the supplier's bank in case it's customer fails to make
payment for the goods purchased from the supplier with in
the stipulated time.
| Is This Answer Correct ? | 59 Yes | 6 No |
Answer / janardhan
A letter of Credit is Basically a Document issued by bank
Guaranteing a clients Ability to pay for goods or services.
A bank or finance copany issues a letter of credit on
behalf of an importer or Buyer.
| Is This Answer Correct ? | 41 Yes | 5 No |
Answer / jakkasureshkumar
A document issued by a financial institution on behalf of a
buyer stating the amount of credit the buyer has available,
and that the institution will honor drafts up to that
amount written by the buyer. It gives the buyer the
prestige and financial backing of the issuing institution
and satisfies the requirements of the seller in completing
the transaction. The accepting institution has a prior
agreement as to how the buyer will pay for the drafts as
they are presented.
| Is This Answer Correct ? | 23 Yes | 2 No |
Answer / joseph
Letter of credit is opened by a bank in favor of it's
customer undertaking the responsibility to pay the supplier
or the supplier's bank in case it's customer fails to make
payment for the goods purchased from the supplier with in
the stipulated time.
| Is This Answer Correct ? | 17 Yes | 0 No |
Answer / harikrishnan
LETTER OF CREDIT IS AN INSTRUMENT ISSUED BY BUYER'S/IMPORTERS BANK TO THE BANK OF EXPORTER,AND GUARANTEEING THAT THEY WILL UNDER TAKE RESPONSIBILITY TO PERFORM THE OBLIGATION IF THE IMPORTER FAILS TO DO SO
| Is This Answer Correct ? | 17 Yes | 3 No |
Answer / padma
The Letter of Credit is issued by the bank, in favour of
repayable secured guaranteeing a clients ability to pay
for goods or services.
| Is This Answer Correct ? | 14 Yes | 3 No |
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