Sight Letter of Credit

Under a sight LC, the nominated or issuing bank examines the documents and, if they comply with the terms of the credit, pays the beneficiary promptly. Under UCP 600, banks have a maximum of five banking days following presentation to determine whether documents comply.

For the exporter, a sight LC gives the fastest payment and the lowest risk, as long as documents are prepared correctly. For the importer, it means paying at the time documents arrive, often before the goods are received and sold, so the importer needs funds or a loan, such as a trust receipt loan, to retire the documents.

A sight LC may call for a sight draft (bill of exchange payable on demand) or for payment against documents alone.

The opposite is a usance (deferred payment or acceptance) LC, which gives the importer a credit period. Banks charge commission for opening both types; the importer's cost under a sight LC is mainly the margin and funding needed at the time of payment.

दृष्टि प्रतीतपत्रमा मनोनीत वा जारीकर्ता बैंकले कागजात जाँच गरी सर्तअनुरूप भए तुरुन्त भुक्तानी गर्छ। UCP 600 अनुसार कागजात जाँच्न प्रस्तुतिपछि बढीमा पाँच बैंकिङ दिन पाइन्छ।

निर्यातकर्ताका लागि यो सबैभन्दा छिटो र कम जोखिमको भुक्तानी हो। आयातकर्ताले कागजात आइपुग्दा, प्रायः सामान बेच्नुअघि नै भुक्तानी गर्नुपर्ने भएकाले रकम वा ट्रस्ट रिसिट जस्तो कर्जा चाहिन्छ।

दृष्टि प्रतीतपत्रमा माग गर्दा भुक्तानी हुने विनिमय पत्र (sight draft) वा कागजात मात्र माग गर्न सकिन्छ। यसको विपरीत म्यादी प्रतीतपत्रले आयातकर्तालाई उधारो अवधि दिन्छ।