Buyer/Seller - Details
What is Foreign LC discounting
LC Discounting is a short-term credit facility offered by a bank to an exporter in exchange for an accepted letter of credit (LC). Upon due diligence, the seller/exporter bank purchase the letter of credit and discounts 90-100 percent of the amount, the discounting happens on the limit available with the LC issuing bank. Due to the low cost of this product, it can be borne by either the exporter or the importer, depending on the terms and circumstances agreed upon in the letter of credit.