1.Customer and supplier agree on L/C as method of payment

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Presentation transcript:

1.Customer and supplier agree on L/C as method of payment Letter of Credit L/C 1.Customer and supplier agree on L/C as method of payment

Letter of Credit 2.Customer gives order to open L/C

Letter of Credit 3.Customer´s bank informs somebody about the opening of L/C

Letter of Credit 4.Supplier´s bank confirms the credit to the supplier

Letter of Credit 5.Supplier dispatches the goods

Letter of Credit 6.Supplier receives the duplicated Bill of Lading

Letter of Credit 7. Supplier produces Bill of Lading

Letter of Credit 8.Supplier receives cash or acceptance

Letter of Credit 9.Supplier´s bank sends shipping documents

Letter of Credit 10.Customer´s bank hands out the shipping documents

Letter of Credit 11.Customer presents the documents

Letter of Credit 12.Goods are released