What is the procedure for a letter of credit transaction?© BrainMass Inc. brainmass.com October 2, 2020, 3:07 am ad1c9bdddf
The letter of credit transaction is a nine step process.
1. The buyer and seller agree to the terms that have been stated, including the details of the transaction. The date of shipment acceptance is also established in the first step.
2. The buyer applies for and obtains the needed financing for the transaction. The bank will take actions to perform the necessary credit checks and may require cash from the buyer in this ...
The solution explains each step in the procedure for a letter of credit transaction process.