Letter of Credit Basic Concepts | Process Flow | Parties Involved

Letter of Credit basic concepts explained in the easiest way in this tutorial. Watch to get your basics of trade finance right.
In this tutorial, we have explained-
What is a letter of credit (Definition)?
In which situation is a letter of credit used in trade finance?
What is the process flow of the letter of credit?
Who is the Applicant in an LC(letter of credit)?
Who is the Beneficiary in an LC(letter of credit)?
What is an Issuing bank or opening bank in the Letter of Credit and its role?
What is an Advising bank in the LC(Letter of Credit) and its role?
What is a Negotiating bank in the LC(Letter of Credit) and its role?
What is a Confirming bank in the LC(Letter of Credit) and its role?
What is a Reimbursing bank in the LC(Letter of Credit) and its role?
We discuss the Highlights of UCP 600 and the basic characteristics of LC

⭐️⭐️Our courses are chosen by international banks and corporates to train their employees.

🚀For our trade finance courses -

Check out our other tutorials here -
Trade Finance -
Trade Finance Basic Concepts | Methods of Payment | Parties Involved -

0:00 Use of Letter of Credit
2:25 Understanding the definition of Letter of Credit
2:51 Process flow of LC
8:41 Vital Points about LC

#letterofcredit
#whatislc
#tradefinance

[ShuddhDesiBanking]

For beginners in Trade Finance, the Gist of Trade Finance in simple language

Learn the ESSENTIALS of Letter of Credit and UCP 600!!
Three Hours of power learning in simple language explained with examples/ Real life documents/ CDCS FAQs -


For full course on SWIFT MT and ISO 20022 MX Messages including Overview of SWIFT GPI

[manishsharma-wzjt]

Madam you have done a great job by making this topic simpler

[faheemrasheed]

I have memorized it by heart... each and everything is crystal clear.... thanks a lot

[shyamnathmallinathan]

I appreciate the length you go to teach a complicated topic into a simple one

[vaibhavikarnik]

Explained in very easy manner thank you 😊 all my doubts and concepts are clear .

[sayanbhattacharjee]

An extremely complicated topic explained with ease.

[shatrujitsingh]

Thanks for explaining in such a easy words

[amitpawar-kr]

GREAT EXPLANATION. VERY SIMPLE VERY STRAIGHT. THANKS A LOT.

[amoschokani]

This was refreshing.keep up the good works.

[vigneshsubramaniyam]

concepts explained as clean as a whistle

[ayenioluwaseun]

An easy-to-understand video. Thank you very much

[chandanb]

Details provided are well understood, Much appreciated.

[ca.rahulkumarrathod]

Well explained👍. If possible, please explain with the practical example/case study.
Like what documents are required in a set of documents with images and what are the terms of conditions?

[sathishvaradhan]

1000th Like is Mine! thanks for the informative video!

[remideroccaserra]

Thank you so much for your stringent and clear explanation

[LexiKnight]

Wonderful video and the entire topic was explained in a very simple way. Kudos to you!

[shanikaariyarathna]

excellent and interesting explanation this is. great !!!

[dilawaiz]

Waoooo superb explanations
Its very helpful for me bcz today my paper

[revanthkrish]

Very useful and understandable video. Thank you so much for making me more clear :-)

[MrFriends]

Good. Just to add that the buyers bank will collect cash margin or cash collateral against the issuance of lc to safe guard against any contingency arising at payment stage.