Foreign Trade Financing: Import Financing Prepared

Foreign Trade Financing: Import Financing Prepared
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Foreign Trade Financing: Import Financing Prepared By Sharmin Rahman Principal Officer Rupali Bank Training Academy Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking

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01
Foreign Trade Financing:
Import Financing Prepared By

Sharmin Rahman
Principal Officer
Rupali Bank Training Academy<br>
02
Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation. (Article-2, UCP-600)

Types of LC based on Payment Mode
 
 
#LC available at Sight
#LC available by deferred payment
#LC available by Acceptance:<br>
03
Types of LC based on nature
Revolving Credit
Red Clause Credit (Advance to cover the costs of purchasing raw materials, processing, and packaging of goods)
Green Clause Credit (Advance a step further by also taking pre-shipment warehousing at the port of origin and insurance into account)
Stand by Letter of Credit (An instrument typically issued by a bank which undertakes to pay one party to a contract (the beneficiary) when the other party has failed, or is alleged to have failed, to perform the contract.)
Transferable credit
Back to Back LC
Usance but Payable At Sight (UPAS) LC<br>