Line of Credit means under Import and Export


Line of Credit

Line of Credit means under Import and ExportWhen a number of buyers are located in the same country, instead of extending credit to different buyers, line of credit is extended to a financial institution located in the buyer's country by the financial institution from seller's country. The advantage is that the responsibility in judging the creditworthiness of different buyers and recovery from them is shifted to that financial institution located in buyer's country. In this process, the financial institution extending line of credit, in the exporter's country, becomes totally free from the worries connected with identifying the buyers, in importer's country, and recovering from them.


Is DP terms of payment safe in export business?

Is Letter of Credit LC safe for an Importer?

Is ON BOARD CERTIFICATE required for LC negotiation


Maintain quality of goods - a prime factor in exports

Master collect House collect

How does Letter of Credit work?

How does STP units work in India?

How does TT (Telegraphic Transfer) work? 

Master Collect House Prepaid

Master prepaid House collect

Procedure for obtaining Registration number of GSTIN

Procedures to get GST Registration number for IT exempted proprietorship firms.

Process of application for registration under GST Act to obtain GSTIN

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

Procedure for Central Excise Clearance Under Claim of Rebate

Customs procedures for Costa Rica Export

Registration required to export from Costa Rica

Import Customs processes in Costa Rica

Import Registration and import Licence procedures in Costa Rica

How to export from Bolivia?

How to Import to Bolivia?

How to import to India from Bolivia?




Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers