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Standby L/C & BG

[em2]Hi everybodyPlease help me understand:a) The difference between an Irrevocable L/C & Standby L/Cb) The difference between a standby L/C & Bank Guarantee. Regards.

Posted on 2013-02-15 00:59:35

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2013-02-15 00:59:35

Dear, Normally L/C is opened by the Buyer in favor of the Seller. However, STAND BY L/C is opened by the Seller in favor of the Buyer for the amount of money which the Buyer has transferred to the Seller as a deposit. If the Seller does not carry out the order, the Seller bank will refund the Buyer that amount. About bank guarantee , I think u should specify more. Since it may be seller bank guarantee or buyer bank guarantee

2013-02-15 00:59:35

2013-02-15 00:59:35

a standby L/C is a form of bankguarantee. an irr. L/C is a payment instrument.

2013-02-15 00:59:35