What Is Letter of Credit?? | How does a Letter of Credit Work | Types of letters of credit Explained

What Is Letter of Credit?? | How does a Letter of Credit Work | Types of letters of credit Explained
Welcome to Paresh Solanki-International Export Import Trainer! In this informative video, we'll unclose the mysteries of Letters of Credit (LC) and provide you with a comprehensive understanding of how they work, as well as the various types of LCs that exist.
🔍 What Is a Letter of Credit (LC)? 📜
A Letter of Credit is a crucial financial instrument used in international trade and business transactions. It acts as a guarantee from a bank or financial institution to ensure that a seller will receive payment for goods or services, provided they meet the specified terms and conditions outlined in the LC.
💼 How Does a Letter of Credit Work? 💰
We'll delve deep into the mechanics of LCs. Learn how LCs provide security for both buyers and sellers by serving as a mediator that verifies compliance with the agreed-upon terms before funds are released. Understand the step-by-step process of LC transactions, from issuance to payment.
📊 Types of Letter of Credit Explained 🌐
There's no one-size-fits-all when it comes to LCs. Discover the various types, including Revocable vs. Irrevocable, Confirmed vs. Unconfirmed, Sight vs. Usance, and more. We'll explain when and why you might use each type, offering practical insights for your business needs.
🤝 Advantages and Disadvantages 📈📉
Explore the pros and cons of utilizing Letters of Credit in your business transactions. Understanding these can help you make informed decisions and mitigate risks.
🌏 International Trade and LCs 🛳️✈️
Learn how LCs facilitate global trade by providing security and trust between parties in different countries. We'll discuss their role in import and export transactions and how LCs help bridge the gap between international buyers and sellers.
Whether you're a seasoned international trader or just starting out in the world of business, this video will equip you with the knowledge you need to navigate the intricate world of Letters of Credit confidently.
Don't forget to like, subscribe, and hit that notification bell to stay updated with our latest content on finance, trade, and business. If you have any questions or topics you'd like us to cover in future videos, please leave a comment below. Thanks for watching, and we'll see you in the next video!
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[@Chara321tr]

Good explanation Sirji

[@PareshSolankiOES]

Thank you for your support! Keep Watching!

[@Nathani2030]

Very useful information sir

[@PareshSolankiOES]

Thank you! Keep Watching!

[@dhannjaypandey8611]

Good advice sir g

[@PareshSolankiOES]

Thank you! Keep Watching!

[@thegujratcarracer9713]

Hello Sir Spices Buy Karne Ke Liye Konsa State Acha He For Cheeper Price?

[@fuzailpatni8825]

Sir tasting ka copy har product mai lagta hain ya buyer bola to banvana ka

[@PareshSolankiOES]

Buyer bole tab banwane ka.

[@venkideshs5105]

Sir what is the diffrent between DP and lc payment t Erm?

[@dikujjalghosh1729]

Thank you so much sir for your great information. #LetsGoGlobal

[@PareshSolankiOES]

Your Welcome! Keep Watching!

[@Sandeep-iq4rp]

Sir aapki classes konsi state mai hoti hai?

[@PareshSolankiOES]

Online and Offline (Mumbai and Ahmedabad)

[@venkideshs5105]

Sir explain what is transferable lc ?

[@PareshSolankiOES]

We have already made a video on this topic you can watch it on our channel.

[@rahulbiswas3336]

Sir I'm Rahul from Kolkata. Sir land port se by truck kaise export hota Hain uska pura details video banaiye.🙏♥️

[@PareshSolankiOES]

We'll try! Keep Watching!

[@Mahadev19373]

​@@PareshSolankiOESyes pls ❤

[@Swarajyaexport]

Sir how to select bank for lc

[@PareshSolankiOES]

Koi bhi National bank se nikalwa sakte ho.

[@travel2988]

Sir, Which bank is good for LC and other payment terms...

[@PareshSolankiOES]

You can take any top 5 bank in the country.

[@gurtegsingh4415]

Sir please explain FICCI

[@PareshSolankiOES]

We'll try! Keep Watching!

[@cricketive4685]

How to find seller

[@PareshSolankiOES]

Long process. Call: [phone]

[@sanghamitrasawant4756]

Sir Mera ek question hai agar goods ham ne bheja our buyer ko goods Mila our buyer hame bolta hai ki goods custum me fasa hua hai to hame kaise pata chalega goods custom me fasa hua hai ya buyer ne goods liya hai to ye condition me hame kya karna hai

[@PareshSolankiOES]

Agar buyer batata hai ki goods customs mein fase hain ya aapko aisa lagta hai, toh aapko ye steps follow karne chahiye: Documents ko check karein. Customs agent se contact karein. Buyer se baat karein. Customs authorities se sampark karein. Legal advice lein agar zarurat ho. Sabse zaroori hai ki aap systematic tareeke se aur sahi communication ke saath samasya ka hal talashen.

[@newtech251]

Sir LC me 100% advance payment supplier ko de do supplier maal nhi bheje and payment bhi na de aisa fraud kr sakta hai Kya

[@PareshSolankiOES]

Yes possible

[@newtech251]

But sir LC me bank garrenty hoti hai na

[@PareshSolankiOES]

Yes

[@kolupulagayathri3969]

Sir i am from Telangana i want to sell handloom clothes and ect can u help me to export them

[@PareshSolankiOES]

Yes I can. Call: [phone]

[@abhishekdalvi2471]

Sir , LC में बैंक कितने परसेंट चार्जेस लेती है ?

[@Anmol__Sharma]

0.75 to 1.5 of transition value

[@abhishekdalvi2471]

@@Anmol__Sharma Thank you for reply .पर मैन सुना था बैंक 5% तक charges लेती है ? यह सच है ?

[@nirmitjain1755]

​@@Anmol__SharmaBhai I want to learn export......how can I learn it.......plz guide me

[@Anmol__Sharma]

@@nirmitjain1755 mein khud sekh rahaa 😂.....dekh ek tip deta hoon jis kam ka bhe export karna hai uska koi supplier pakdo or practically sekho jitna practically sekhoge utha jaldi samjh aayega

[@Anmol__Sharma]

@@abhishekdalvi2471 5 percent is too much normal bank charge 0.75 to 2 percent max not more than that