What Is a Sight Letter of Credit?

Sight credit refers to a letter of credit that immediately fulfills the payment obligations after the issuing bank or the paying bank receives the bill of exchange and documents that meet the terms of the credit. Most of the international trade settlements are sight letters of credit. ^[1]

Sight letter of credit

Sight credit refers to a letter of credit that immediately fulfills the payment obligations after the issuing bank or the paying bank receives the bill of exchange and documents that meet the terms of the credit. Most of the international trade settlements are sight letters of credit. ^[1]

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Spot

Its characteristic is that the beneficiary's collection of foreign exchange is safe and fast, which is conducive to capital turnover.

Spot L / C: The spot L / C requires the beneficiary to issue a spot L / C. In addition, the letter of credit stipulated that the beneficiary was exempted from issuing the bill of exchange right, and the letter of credit that required the bank to pay immediately was also a sight letter of credit.

The sight letter of credit payment time is: within 5 working days after the bank receives the document.