Buyer/Seller - Details
Reimbursement finance is funding provided by banks other than the letter of credit issuer and supplier (LC).
As soon as the shipment is completed, the supplier's bank sends all required documentation to the LC issuing bank and requests payment from the reimbursed bank. After receiving reimbursement authorization from the LC issuer, the reimbursing bank pays the supplier's account. On maturity, the importer pays the local bank, which pays the reimbursement bank.