Hi Friends
- What are advantages of having an L/C available by negotiation with Bank XYZ in comparing with having an L/C available by payment with the same Bank ? (I mean from a beneficiary perspective )
- what about the nominated bank's commissions and charges ? Banking commissions and charges are different in two above mentioned L/CS ?
Regards
Negotiable L/C
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
with or without recourse
Hi Pal,
by payment with bank x, means that theoretically, you will receive payment without recourse, by negotiation with bank x, you will receive an advance by bank x, with recourse if the bank x will not be reinbursed by issuing bank(it is possible to have the same without recourse but it will cost more). A beneficiary will opt for payment l/c.
other comments appreciated
Ciao
by payment with bank x, means that theoretically, you will receive payment without recourse, by negotiation with bank x, you will receive an advance by bank x, with recourse if the bank x will not be reinbursed by issuing bank(it is possible to have the same without recourse but it will cost more). A beneficiary will opt for payment l/c.
other comments appreciated
Ciao