សារព័ត៍មានពាណិជ្ជកម្មកម្ពុជា

The Letter of Credit The purpose of a letter of credit is for the issuing bank to substitute for the credit-worthiness of the buyer. As defined earlier, a letter of credit assures the seller that payment will be made against the merchandise shipped, on condition that the documents presented are in compliance with the letter of credit terms. The seller is thus protected from buyer credit risks as the issuing bank is providing a guarantee of payment. Unless otherwise specified the letter of credit is considered to be irrevocable, that is: it cannot be changed unless both the buyer and the seller agree to make changes. It is not advisable to use a revocable letter of credit. An irrevocable and confirmed letter of credit gives the strongest guarantees, and thus is more expensive than a simple irrevocable letter of credit. An (irrevocable) confirmed letter of credit is basically used when the parties are dealing for the first time with each other, or when the seller is not sure about