The Certified Documentary Credit Specialist (CDCS) exam is a prestigious certification offered by the London Institute of Banking & Finance (LIBF) that validates expertise in documentary credit transactions. As with any professional certification, the question of whether the CDCS exam is tough is subjective and depends on various factors. Let’s explore what makes the CDCS … Read more
In the dynamic world of international trade, businesses often encounter the need for advance payments as part of their transactions. Understanding the nuances of advance payments is crucial for both buyers and sellers to navigate the complexities of global commerce successfully. This post aims to shed light on advance payments in trade, covering key concepts, … Read more
A red clause letter of credit is a financial instrument that has been in use for a long time. It is a type of letter of credit that is used to provide financial assistance to the seller before the goods are delivered. What is a Red Clause Letter of Credit? A red clause letter of … Read more
A revocable letter of credit (LC) is a financial instrument that provides a conditional payment guarantee from a bank to a beneficiary on behalf of a buyer. The primary purpose of a revocable LC is to facilitate international trade by minimizing the risk of payment default. In this post, we will discuss the basics of … Read more
A revolving letter of credit is a type of letter of credit in which the amount of the credit revolves upon shipment of goods, presentation of documents or after a specific time frame. In other words when any of the above mentioned events occurs, the amount of the letter of credit gets replenished automatically. There … Read more
Documentary collection is a settlement method used in international trade. In this payment method banks act as intermediaries between the buyer and seller to facilitate the exchange of documents and payment. In a documentary collection, the seller ships the goods to the buyer and submits the shipping documents, such as the bill of lading, commercial … Read more
A back-to-back letter of credit (LC) is a financial instrument in international trade where two separate LCs are used to facilitate a transaction between a buyer and a seller. The first LC is issued by the buyer’s bank (also known as the “importer bank”), and is addressed to the seller’s bank (also known as the … Read more
A transferable letter of credit, also known as a “transferable credit,” is a type of letter of credit that allows the beneficiary to transfer all or a portion of the credit to a third party, known as the “transferee.” This type of letter of credit is typically used in situations where the original beneficiary is … Read more
Letter of credit, also known as documentary credit, is a financial instrument commonly used in international trade to provide a guarantee of payment to the seller (beneficiary) from a buyer’s bank (issuer). It is a commitment by the issuer to pay the beneficiary a certain amount of money, as long as the beneficiary presents specified … Read more
Practice makes a man perfect. So let’s solve some CDCS sample questions. These CDCS practice questions are not an actual representation of questions that will be asked in the CDCS exam. However these will help you to test your understanding of the concepts learned. For your convenience, at the top of the post, we have … Read more
