Advise through bank意思
"Advise through bank" is a term commonly used in the context of documentary collections, letters of credit, and other banking transactions related to international trade. It refers to the process of sending a document or message through a bank as an intermediary. Here's a breakdown of what it means:
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Documentary Collections: In a documentary collection, a seller (beneficiary) presents documents (such as a bill of lading, commercial invoice, and sometimes a certificate of origin) to their bank. The bank then sends these documents to the buyer's bank, instructing the buyer's bank to collect payment from the buyer. The "advise through bank" in this context means that the bank is acting as a messenger to convey the documents to the buyer's bank.
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Letters of Credit: A letter of credit is a document issued by a bank on behalf of a buyer that serves as a guarantee for payment to the seller. In this case, "advise through bank" refers to the process of the issuing bank notifying the seller's bank about the availability of the letter of credit. The seller's bank then notifies the seller that they can fulfill the terms of the letter of credit to receive payment.
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Other Banking Transactions: The term can also be used in other banking contexts where it's necessary to communicate through banks, such as in the case of bank guarantees, remittances, or any other transaction where a bank is involved as a third party for the purpose of conveying information or documents.
In essence, "advise through bank" is a way of using the banking system to ensure the secure and formal transmission of documents or messages between parties in a transaction. It's a common practice in international trade to ensure that all parties involved are informed and that the transaction is conducted in a professional and legally binding manner.