Hello,
Below is a transaction procedure between buyer and seller
1. Both parties sign SPA
2. Seller presents proof of product
3. Buyer issues DLC MT700 to seller bank X
4. Seller ships products to buyer
5. Buyer verifies product and pay for product at full value via MT103/TT to seller bank Y within 72 hours
In theory, seller can still present all the documents to seller's bank and cash out the DLC MT700 at bank X after receiving payment from buyer at bank Y, correct?
When issuing DLC MT700, will it help to avoid seller cashing out MT700 after receiving payment if buyer adds the following additional condition to field 47A:
47A: ADDITIONAL CONDITIONS: Seller has not received final payment of MT103/TT within five working days
Risk of seller cashing out DLC MT700 after receiving payment via TT/MT103
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kingsleyomire
- Posts: 1
- Joined: Tue Jul 10, 2018 4:18 am
- First Name: Kingsley
- Last Name: Omire
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
More than l/c is a SBLC......
Hi Pal,
It seems to me a Stand By Letter of Credit, where the only document to be presented would be:
-Beneficiary's statement that the buyer has not effected the payment on maturity (or the like)
accompany by a supporting document showing date of shipment etc.
Other comments appreciated
Ciao
It seems to me a Stand By Letter of Credit, where the only document to be presented would be:
-Beneficiary's statement that the buyer has not effected the payment on maturity (or the like)
accompany by a supporting document showing date of shipment etc.
Other comments appreciated
Ciao