Restricted Negotiations of Lc docs.

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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mohan15082
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Restricted Negotiations of Lc docs.

Post by mohan15082 » Tue Jul 01, 2014 8:32 pm

What are the benefits of restricted negotiation of Document for beneficiary under LC?

Gul
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main reason

Post by Gul » Tue Oct 14, 2014 9:19 pm

there can be several reason for the issuing bank to restrict the lc to negotiating bank
but the main reason, in my opinion, is that the issuing bank wants to be sure that the documents will be examined and negotiated by the bank which is known to the issuing bank (in terms of expertise, reputation, service etc.), and eliminates the risk that the seller will present the documents for negotiation to the bank with which the issuing bank never worked before.

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