Bronze Wing Trading Blog

LC Payment at Sight is the payment term used in international trade finance to secure trade dealings from financial risks involved. Also, this term assures that the seller will receive the payment, once they fulfilled the terms mentioned in the issued LC at Sight.

MT799 Vs MT760 – As a businessman, you might be aware of the difference between MT799 and MT760. Yes…. MT799 is used as a certification to prove financial capability.

Documentary Letters of Credit are used as a payment term for centuries to facilitate global trade deals. Mostly, LC Terms and Conditions are governed by the ICC and UCP for Documentary Credits.

A Letter of Credit is a written undertaking issued by a bank, on behalf of its client, i.e. an importer or a buyer. This acts as a promise from a bank to make the payment to the seller, once they meet certain conditions.

Letter of Credit (LC) and Standby Letter of Credit (SBLC) are mostly used by importers and exporters as a payment in International Trade Transaction to ensure the financial safety between the buyer and the supplier.

Looking to avail LC at Sight – Import LC to facilitate your global trade transaction? But don’t know what are documents required for LC Opening? We’re here to help you!

What is Standby Letter of Credit? A Standby LC is a payment given by a bank on behalf of their client. It often referred to as a loan of last resort. That means the bank fulfills the obligations at the end of the contract, only if the client defaults.

What is a Bank Guarantee? Bank Guarantees are defined as a financial instrument that is issued by a bank on behalf of its client at their request. Via BG MT760, they assure the supplier that they will meet the financial commitment. i.e., in case, if any default occurs or the buyers cannot meet the terms of their contract.

Letters of Credit and Bank Guarantees mostly being used in international trade transactions. Both LC & BG are the guarantee that is issued by banks to give payment commitment to the counter party.