The payment of the letter of credit can be done in three ways:
Letter of credit can be paid with cash, either by the issuing bank or the correspondent bank. It may also be paid through the adoption of an effect from a correspondent bank or the issuing bank. The third form is the deferral without support for differences in exchange rates.
Once the credit have been submitted and accepted, the exporter shall submit allDocumentation which proves that the shipment was made after the letter of credit. This bank is this information to the buyer. The bank go to the payment of the goods, if the transaction and the shipment after what had dictated the letter of credit ready.
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