http://financeandrefinance.com Finance facts you should know to make more money. Tue, 01 May 2012 00:59:05 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 http://financeandrefinance.com/accredited/ http://financeandrefinance.com/accredited/#comments Wed, 24 Jun 2009 22:07:32 +0000 TheFinanceGuy http://financeandrefinance.com/?p=123 Accredited: by way of payment which the buyer reserves a certain amount of money in the name of the supplier or to the bank of the latter, for payment for goods delivered, services rendered or work performed when sending their performance or the provision is conditions agreed upon. Letter of credit can be opened at the bank amount to the supplier or the bank to another bank in accordance with agreements made between parties. Letter of credit is the safest means of payment for both parties, but also the most expensive. Buyer has the advantage of correct performance of obligations by the supplier.
The supplier has the advantage collection corresponding amount if he fulfills the duties. Letter of credit is opened for each client, to request the buyer. This method of payment is used, usually when the buyer repeatedly late in payment, creating financial difficulties supplier. On receipt of documents, where the bank is open acreditivului check if the supplier has complied with the terms of the opening: the presentation of documents attesting livraea goods, works, services, the authenticity of signatures on documents, monitor the bills in the letter of credit.
Mandatory elements of a credit are: name and address of the recipient’s name and address of bank, name and address of the buyer, the amount for which the open letter of credit, letter of credit subject description, the term of validity, describe documents provide proof of delivery of goods, services, performance papers. Acreditivului assumes that the customer at the bank issuing the letter of credit, any amount necessary to cover the loan and will not only be used for this purpose. The settlement is done only when all terms of substance and form have been fulfilled.
Acreditivului closes in one of the conditions: the use of full amount, upon expiry of validity, at the request of the employer, but only after the supplier and has consented. Remaining unused balance shall be remitted by a bank letter of credit domiciliatoare account properly for the buyer to the bank. Letter of credit is a payment instrument which is widely used in international trade (documentary credit).

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