Discounting LCs

ameetsimha · Post by **ameetsimha** » Mon Feb 26, 2018 10:28 am

LC issued by Bank A. Documents presented by Bank B and accepted by bank A with 90 days usance. Can Bank C discount this LC. If yes how and what changes will be needed under the LC.

Megaman · Post by **Megaman** » Tue Mar 13, 2018 6:50 pm

Hi there, i have similar case - do you received any reply regarding your inquiry
if not - what is the decision taken ?

picant · Post by **picant** » Wed Mar 14, 2018 11:03 am

Hi Pal,

probably discounting of a deferred payment l/c is regulated by Country Law. The bank A must be instructed by bank B to effect payment to bank C and inform the latter about this irrevocable instruction. It would be easier by presenting a draft. However IMHO it is locally regulated.
Other comments appreciated
Ciao

snejiblajeva · Post by **snejiblajeva** » Mon Mar 26, 2018 2:09 pm

It is possible Bank C discounts, first it has to receive confirmation for payment on due date from Bank A with MT7xx
Then Bank C signs contract with the beneficiary through the intermediary of his bank (may be Bank B) and the beneficiary pays discounting fee.
For example the presented documents are for 10 KEUR, comm for Bank C is 900 EUR
Bank C transfers to beneficiary 9 100 EUR and awaits from paying Bank on due date 10 KEUR.

zafarameer · Post by **zafarameer** » Sun Apr 01, 2018 2:00 am

Hi All (i am new in this forum)

I have one question, my buyer said i am going to issue LC at sight MT700 through any one of top 10 banks with 120 days. My question is that i want to discount this LC minimum 60% to 75% is it possible? if yes then what i have to ask my buyer regarding the LC.

Thanks and Regards
ZAFAR

Discounting LCs

Discounting LCs

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Re: Discounting LCs

Re: Discounting LCs

LC Discounting MT 700