Advising Bank is the bank that advises the letter of credit to the beneficiary. Advising banks act upon the request of issuing banks.
Generally, advising banks are located in the same country as beneficiaries. That is why issuing banks need their services.
Letters of credit are transmitted between banks via an online platform called Swift.
Swift platform is secure and fast, but it is expensive. That is why most of the exporters and importers do not have an access to the Swift platform.
In today's international trade world, letters of credit are transmitted from issuing bank to the advising bank via swift platform and afterwards advising banks advises the credits to the beneficiaries other means of telecommunication such as email attachments of .tif or .html files.
Important Note: You should keep in mind that swift is an authenticated teletransmission platform. A letter of credit or amendment transmitted via swift is deemed to be the operative, and any subsequent mail confirmation is not needed and shall be disregarded.
Generally, advising banks are located in the same country as beneficiaries. That is why issuing banks need their services.
Letters of credit are transmitted between banks via an online platform called Swift.
Swift platform is secure and fast, but it is expensive. That is why most of the exporters and importers do not have an access to the Swift platform.
In today's international trade world, letters of credit are transmitted from issuing bank to the advising bank via swift platform and afterwards advising banks advises the credits to the beneficiaries other means of telecommunication such as email attachments of .tif or .html files.
Important Note: You should keep in mind that swift is an authenticated teletransmission platform. A letter of credit or amendment transmitted via swift is deemed to be the operative, and any subsequent mail confirmation is not needed and shall be disregarded.