Import/export Letter of Credit
It is said to the credit which buyer assigns i so that he imports a product to his own country and in general this credit is in another country and its value is export value.
Revocable Letter of Credit
In this type of credit buyer and the bank which has established the LC, are able to manipulate the letter of credits or make any kinds of corrections without informing the seller and getting permissions from him. This type of LC is not used a lot.
Irrevocable LC
In this type of LC, any kinds of change and manipulations from the buyer part and the establisher bank require the permission and satisfaction of seller part. According to the last rules of international business room, return ability or none return ability, the credit will be none returnable.
confirmed LC
They are the guaranties that buyer will be given so that, the buyer will give the guaranty from his own bank to any other valid bank that the seller will desire it.
Unconfirmed LC
This type of letter of credit, does not acquire the other bank's confirmation.
Transferrable LC
It is said to the credit that the seller can give a part or parts of credit (Completely) to the person or persons he decides. This type of credit is a benefit for seller.
Untransferable LC
It is said to the credit that seller cannot give a part or completely right of assigned credit to somebody or to the persons he wants. In international commerce, it is required that the credit will be untransferable.
Unsance LC
It is kind of credit that won't be paid and assigned immediately after checking the valid documents but paying and assigning it requires an indicated duration which is accepted by both of the buyer and seller. In reality, buyer will give an opportunity to the seller to pay the required money after taking the related goods and selling them.
At Sight LC
It is a kind of credit that the announcer bank after observing the carriage documents from the seller and checking all the documents immediately pays the required money.
Red Clause LC
In this kind of credit assignment seller before sending the products can take the pre-paid and parts of the money from the bank. The first part of the credit is to attract the attention acceptor bank. The reason why it named so, is that the first time this credit is established by the assigner bank, to take the attention of the offered bank, the terms and conditions were written by red ink, from that time it became famous with that name.
Back to Back LC
In this type of LC consisted of two separated and different types of LC. First one is established in the benefit of the seller that is not able to provide the corresponding goods for any reasons. Because of that reason according to the credit which is opened for him, nither credit will be opened for another seller to provide the desired goods and sends it.
