LC Documents Checklist form
L.C. Stand for Letter of Credit
What is L.C.?
L.C. is Payment method where supplier receive the Letter of credit against sold material to customer, customer request to bank for the give the letter on behalf of the credit of customer had purchased material, on transitions and company reputations bank taken the responsibility of the material amount on behalf of the customer which also customer of the bank too. When the terms are complied all the amount are paid by bank to supplier and debit the same amount to customer account, customer are pay the amount to bank mean bank is middle way of the transitions of the payment.
letter of credit is the formal document for the payment transition, when any company are purchase the material from any supplier that buyer company gives the LC to supplier against the material purchased, LC is the credit format which was used in the any small scale to multi national companies and also its old system which are used for the business transitions for the payments.
LC is the payment root, there are too many ways for the payment like T.T. / Cash / Cheque and L.C. is one of the payment system are widely used in the export and domestic business.
In business transitions there are too many L.C. are on desk that, commercial peoples are need to care of each LC through checking methods, checklist is one of the best method for the commercial people can concentrate on important information. Here few checklist points are given as below:
- Name of Applicant
- Address of Applicant
- LC data & LC expiry date
- Last date of material shipment
- last date of negotiation
- Amendment records
- Documents requirements
- Additional Conditions
- Specific Document required if any
- Document information given to
- LC due date
- Follow up
On base of the checklist points, all the information can be possible to capture in short survey, this is the unique method to possible whole L.C. not required to read against and against.
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