Let's assume you work for a small company that exports products. Suppose your employer wants to be paid through a letter of credit. Your boss decides you will become the company's expert on the letter of credit. Using the websites below or websites of major global banks (do not use individual banking; be sure you use the small business option), learn about the procedures and instructions for getting paid through a letter of credit.

Part One

Research the various steps and procedures necessary to pay (or get paid) via a letter of credit. Begin your research by investigating the following websites. Per the synopsis above, you are encouraged to discover your own sources as well.

• CIBC (Links to an external site.)
• NAB (Links to an external site.)
• Wells Fargo (Links to an external site.)
• Chase (Links to an external site.)
• Bank of America (Links to an external site.)

Part Two

Write a short report explaining what you learned about a letter of credit. Write this report as though you were presenting your findings to your boss. Be sure to explore the following topics within your report:

• The requirements for getting a letter of credit.
• The services that the bank offers for a letter of credit.

Answer rating: 100% (QA)

Small businesses make use of different types of payment instruments and letter of credit or LOC happens to be one of the most popular instruments A LO... View the full answer