Letter of Credit & UCP 600: Letter of Credit

In setting up a documentary credit trade transaction, the buyer wants to be sure of receiving the merchandise in the right quality and quantity; in the right time and place of delivery, and to pay as late as possible. On the other side, the seller wants to be sure of receiving exact payment of the merchandise he has exported, in the correct amount, in the right currency, and as soon as possible. As to the banks, they are bound to disburse if documents comply with the terms of the credit.