Lc Deferred Payment Vs Acceptance. The use and non-use of drafts is the key differentiator between these two types of credit. Meaning of Deferred Letter of Credit.
The difference is that the acceptance LC requires a time draft whereas the deferred paymet LC does not. Deferred payment is one of the payment options available under letters of credit along with sight payment acceptance and negotiation. It can be either by acceptance by payment or others.
It can be either by acceptance by payment or others.
Under deferred payment terms exporters receive letter of credit amount not at sight but after a certain period of specific date such as 30 days after shipment 60 days after commercial invoice date etc. LC with deferred payments If you are an exporter a letter of credit or LC also known as a documentary credit enables you to offer an importer the option of deferred payment. The use and non-use of drafts is the key differentiator between these two types of credit. Acceptance commission is charged for UsanceDeffered LC only.