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| Shipper |
| See Consignor |
| Silent Confirmation |
| In a normal confirmed Letter of Credit, the issuing bank will request the advising bank to add its confirmation. A silent confirmation occurs when the issuing bank has not requested the advising bank to add its confirmation but the bank does so at the request of the seller |
| Standby Letter of Credit |
| A guarantee issued by a bank, on behalf of a buyer that protects the seller against non-payment for goods shipped to the buyer. The buyer pays the seller directly for the goods and only if the buyer fails to pay does the seller claim under the Standby Letter of Credit. |
| SWIFT |
This is an inter-bank communication system and stands for Society For Worldwide Interbank Financial Telecommunications. Every message is sent in a standard format. This allows the banks' computers to read the messages and to keep the information in their computer systems. This helps to get rid of human errors and reduces the length of time it takes to send messages between banks.
Sample messages sent are shown below.
FM 103 - bank payment on behalf of a customer. FM 400 - bank payment in settlement of a collection. FM 700 - bank issuance of a letter of credit. |
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