BFM Types of Letter of Credits : ✅ Documents against Payment LC : Where payment is made again

BFM Types of Letter of Credits : ✅ Documents against Payment LC : Where payment is made against documents ( D/P LC ) ✅ Documents against Acceptance LC : Where payment is made on maturity date ( D/A LC ) Irrevocable LC/ Revocable LC : ✅ In Irrevocable LC : Issuing bank can amend/cancel LC with the consent of beneficiary (Seller) ✅ In Revocable LC : Issuing bank can amend/cancel LC without the consent of beneficiary (Seller) With or Without Recourse LC : ✅ With Recourse : Where the beneficiary holds himself liable to the holder of the bill, if dishonoured. ✅ Without Recourse : Where the beneficiary does not hold himself liable, if the bill is dishonoured. ✅ Restricted LC : Where a specified bank is designated to pay, accept or negotiate the documents ✅ Confirmed LC : Where the advising/other bank at the request of issuing bank adds confirmation that payment will be made ✅ Transferable LC : At the request of the opener, the LC can be transferred to one or more parties. ✅ Back to Back LC : Where an exporter request for opening of LC in favour of local suppliers in cover of original LC received from his buyer Types of Letter of Credit ✅ Red Clause LC : Where the LC permit the negotiating bank to grant of packing credit to the beneficiary at issuing bank ’ s responsibility ✅ Green Clause LC : LC permits the advance for storage of goods in addition to pre-shipment advance ✅ Stand by LC : It is similar to performance bond or guarantee. The beneficiary can submit the claim along with requisite documents to issuing bank ✅ Revolving LC : The amount of drawing made under LC would be reinstated and made available to the beneficiary again