hi pals,
I would like to ask a question on a subject which confuses me.. what are the differences between a term negotiation lc and a deferred payment lc? Both are discountable or payable at maturity, well, differences? (except term nego could be effected on/before maturity prior to the funds received from IB)
expecting your views
thanks..
nego / deferred payment lc
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- berry
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not the correct term
hi!
i think term negotiation is not a international standard term. from your post my best guess is that by term negotiation you are trying to mean a usuance LC available by negotiation and by deferred payment LC you are meaning a usance LC available by payment. you may consider these two as the same. under UCP 600 negotiation and discount of deferred payment undertaking is the same.
i think term negotiation is not a international standard term. from your post my best guess is that by term negotiation you are trying to mean a usuance LC available by negotiation and by deferred payment LC you are meaning a usance LC available by payment. you may consider these two as the same. under UCP 600 negotiation and discount of deferred payment undertaking is the same.
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nego/deferred payment
Hi coppermoon,
It is only between one is calling for drafts drawn on the L/C issuing bank and the other not calling for a drafts.
Both L/C bears the commitment and undertaking by the L/C issuing bank.
Cheers
It is only between one is calling for drafts drawn on the L/C issuing bank and the other not calling for a drafts.
Both L/C bears the commitment and undertaking by the L/C issuing bank.
Cheers
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nego / deferred payment lc
Dear coopermoon",
I would like to give you characteristics of two types of credit as follows:
1. A credit available by negotiation
+ Payment may or may not be immediate
+ drafts may or may not be required for presentation
+ payment, if the credit is not negotiated earlier, is on receipt of documents by the issuing bank (sight) or the maturity date of the draft (usance)
2. A credit available by defer payment
+ Payment is not be immediate
+ Payment is at a time in the future, determinable in accordance with credit
+ drafts not be required
.
Hope you clear.
I would like to give you characteristics of two types of credit as follows:
1. A credit available by negotiation
+ Payment may or may not be immediate
+ drafts may or may not be required for presentation
+ payment, if the credit is not negotiated earlier, is on receipt of documents by the issuing bank (sight) or the maturity date of the draft (usance)
2. A credit available by defer payment
+ Payment is not be immediate
+ Payment is at a time in the future, determinable in accordance with credit
+ drafts not be required
.
Hope you clear.