Deffered Payment Lc
LC in which payment is made after agreed time period in installment basis or in a lumpsump as in usance lc is known as deferred payment lc. this type of lc is normally used where a payment is required to make by lc for availing (buying) services rather than goods itself. a deffered payment lc is also used where in a portion of the value of goods is paid, and rest is paid after verification of goods by buyer or after assessing the value of goods taking into account the quality, shortages etc.
Installment Lc calls for shipment of goods in specified qunatit on stated dates or periods. since this credit is for shipment in specifically stated installments. it is called installment credit. an installment credit is similar to any simple lc with partial shipment. however a simple lc with partial shipments doesn't specify quantities and dates of such partial shipments.
The lc against which payment is made at first sight of credit confirmed import documents asked in the credit is called the sight lc. beneficiary may or may not be called upon to draw a draft under sight lc