Our Glossary of Terms
Same as Letter of Credit, Credit Letter
A Letter of Credit is a document issued by a financial institution, like Century Bancorp, that guarantees payment to the seller, known as the beneficiary, should the applicant, our clientele, not fulfill the applicant’s side of the obligations in the transaction.
SWIFT Financial Messaging
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.
Same as Importer, Contracted, Buyer
Same as Exporter, Contractor, Seller
The financial institution issuing the documentary credit.
A non-confirming financial institution that advises the documentary credit and any amendment without any obligation to honor that documentary credit.
Bank (also referred to as the seller’s bank or exporter’s bank), usually in the seller’s country, whose primary function is to authenticate the letter of credit and advise it to the seller without any obligation.
Same as Beneficiary’s Bank
Financial institution obligated to honor a documentary credit issued from a separate issuing institution should that institution be unable to pay.
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