网站内容来源于：http://www.chemicalmining.com.cn/content.asp?id=166

标题：risk-the risk of L/C

文章关键词：LC,seller,buyer,not,may,risk,bank,establish,英文,And

正文:

今晚 熬夜 终究完成了 一篇五百字的英文作文。。。似乎是我第一次整个本人写既咁长既英文文章。。。

哈哈。。。发上来纪念一下。。。（加粗部分是抄的。哈哈）

Letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking. Although LC is almost issued by some authoritative financial institution, especial some famous bank , it is not  riskless. In contrary , LC is a method of payment with great risk. And I ‘d like to analyze the different type risk of LC as follow.

On the one hand , it’s the risk that the buyer faced to.

Firstly, the use of LC is based on the credit article instead of the contract between the seller and buyer. So in the situation that the commodity that consigned by the seller are not suit to what the contract required, the bank may still pay the bill according to the consignment document that seller provided. And the buyer get the expense.

Secondly, the seller may establish a fake consignment document to cheat the bank. Because the bank have not duty to check the document the seller provides , so may pay the money to seller. And the buyer do not get the commodity that the contract required.

On the other hand , seller may faces to more risk than the buyer.

Firstly, the buyer might not establish the LC according to the contract in time or even not establish it at all. In order to add some terms that benefits the buyer, and causes the expense of seller.

Secondly, the buyer may establish a fake LC or collude with some bank staffers to establish LC without payment. And give the fake one to seller, cheating the seller , resulting to that seller losses both money and commodity.

Thirdly, seller may not get the payment according to a real LC, for the reason that different law and rules between different country and institution. For example ,some insuran