LC Discounting and LC Confirmation

LC Discounting is a way a seller gets paid immediately even if the buyer wants a longer term for payment. The approach used to discount a letter of credit is similar to factoring an invoice, in that the seller who is awaiting payment for goods...

The advising bank for varied reasons could decline to feature its confirmation and easily advise the LC Confirmation while not engagement on its half. LC Discounting permits exporters to get their cash quicker. In order to LC Discounting, the seller’s bank can contact the bank supplying the letter of credit provided by the client.

The seller includes this request once submitting the applying for LC Confirmation to his bank. In most instances the issued credit states: "Please advise beneficiary adding your confirmation" or words to similar result. Note: his is also an invitation, not a requirement.

The advising bank for diverse reasons might decline to feature its confirmation and simply advise the Letter of Credit Confirmation whereas not engagement on its half year. The seller includes this request once submitting the applying for LC Confirmation to his bank.