what's the exact meaning of discounting? what's the difference between negotiation? Is discounting just happening in acceptance or negotiation lc, never happens in sight lc?
Thanks for your answer.
could sight lc be discounted
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- Posts: 63
- Joined: Tue Feb 03, 2009 9:23 pm
discounting lc
dear fionawang
discounting normally use for usance lc which make available by negotiation and benef need to get money immediate.so lc must indicate discount charge are for applicant or benef a/c (upto their previous agreement) if discount charge for applicant's a/c , bene will received payment at sight in full amount without deduction of discount charge.in otherwise if discount are for benef's a/c , they will received payment at sight by deduct of discount charges.
I think it will never happen with sight lc.
other comment appreciated.
discounting normally use for usance lc which make available by negotiation and benef need to get money immediate.so lc must indicate discount charge are for applicant or benef a/c (upto their previous agreement) if discount charge for applicant's a/c , bene will received payment at sight in full amount without deduction of discount charge.in otherwise if discount are for benef's a/c , they will received payment at sight by deduct of discount charges.
I think it will never happen with sight lc.
other comment appreciated.
- berry
- Posts: 329
- Joined: Fri Nov 07, 2008 11:36 pm
discounting vs negotiation
if someone purchase his own liability, then it is called discounting. if someone purchase other's liability, then it is called negotiation. need to mention that UCP makes no reference to discounting