RMG Life Information

Bills of Exchange (BOE) Payment Realized Procedure

LC Letter of Credit

Bills of Exchange (BOE) Payment Realized Procedure is common process against letter of credit (LC). Bills of Exchange is a documentary acceptance payment method. We know every company recovery his credit by the process. Bill of Exchange is a trust worthy transaction to buyer and seller.

Letter of Credit

Below are the simple steps guide of how the payment method works:

  1. Supplier submits BOE, along with original payment documents to their bank.
  2. Suppliers bank submits BOE, and copy payment documents to Buyers Bank.
  3. Buyers bank submit BOE, and copy payment documents to Buyer for approval.
  4. Buyer approve BOE, on standard terms As sight/60/90 days.
  5. Buyer bank informs the suppliers bank that Buyer have accepted the BOE on standard terms.
  6. Suppliers bank release payment documentation including Bill of Lading to Buyer.
  7. On due date Buyer bank takes the money out of Buyer account and pays to the suppliers bank.
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