LC Discountings India
LC Discounting India
Steps involved in the Letter of Credit
When the importer and exporter decide to purchase and sell the specific product and want to justify the transaction backed by the LC Discounting India, the process of LC issuance and discounting of LC starts. The standard processes in the LC.
Step 1: The buyer has to issue a letter of credit to the seller. So, he has to approach his banker and request for the issuance of the LC. While applying for the LC the applicant has to provide all the required details for the LC issuance. That may include, the name of the seller, the swift code, amount, details of the products and shipments, etc.
Step 2: Once all the details are received, the opening bank will issue the LC to the seller. Thereafter, LC Discounting issuing bank or advising bank will add the name of the advising bank or where LC is expected to get discounted.
Step 3: Once LC is issued, the advising bank will cross-check the authenticity and the given details. If advising banks that justifies all the given inputs are correct then it will send the LC to the seller and if any corrections need to be made, it will again send the details to the issuing bank.