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  • Baby LC

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    nikhaya
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    This diagram shows the process of a back-to-back letter of credit transaction involving three parties: an ultimate beneficiary, a middleman, and an issuing bank. The ultimate beneficiary enters into a contract and receives an advisory letter of credit from Advising Bank I. The middleman then applies for their own letter of credit from Issuing Bank I, who issues a back-to-back letter of credit to the ultimate beneficiary through Advising Bank II. Documentation and funds are exchanged at each step to facilitate international trade between the three parties.

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    BABY LC

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    This diagram shows the process of a back-to-back letter of credit transaction involving three parties: an ultimate beneficiary, a middleman, and an issuing bank. The ultimate beneficiary enters into a contract and receives an advisory letter of credit from Advising Bank I. The middleman then applies for their own letter of credit from Issuing Bank I, who issues a back-to-back letter of credit to the ultimate beneficiary through Advising Bank II. Documentation and funds are exchanged at each step to facilitate international trade between the three parties.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views1 page

    Baby LC

    Uploaded by

    nikhaya
    This diagram shows the process of a back-to-back letter of credit transaction involving three parties: an ultimate beneficiary, a middleman, and an issuing bank. The ultimate beneficiary enters into a contract and receives an advisory letter of credit from Advising Bank I. The middleman then applies for their own letter of credit from Issuing Bank I, who issues a back-to-back letter of credit to the ultimate beneficiary through Advising Bank II. Documentation and funds are exchanged at each step to facilitate international trade between the three parties.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    5. GOODS 13.

    GOODS

    ULTIMATE BENEFICIARY MASTER L/C BABY L/C


    MIDDLE MAN
    )

    1. CONTRACT 9. CONTRACT

    $$$$$$$ $$$$$$$

    8. DOC
    4. ADVIS L/C 2. APP L/C 12. ADVIS L/C 10. APP L

    6. DOC 14. DOC

    3. L/C 11. L/C

    7. DOC 15. DOC

    $$$$$ $$$$$
    ADVISING BANK I ISSUING BANK I (ADVISING BANK II)

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