ABSTRACT
An exporter of finished goods from the UK to Atlantis and their overseas importer requires credit. There are a number of ways in which the bill of exchange may help exporter. The best procedure is for exporter to ask their customer to open in the favour of an irrevocable documentary letter of credit with a London bank. In this letter of credit the London office of the Bank of Atlantis undertake to accept a bill drawn on importer by exporter, against surrender to them of the shipping documents relating to the goods. The Lombard Bank buys the bills from exporter. It makes exporter an advance, against the security of the bills. The importer can ask their banker, the Lombard Bank, or an accepting house, to open an irrevocable documentary letter of credit in favour of the overseas seller. The Lombard Bank will release the documents to importer against payment of the amount of the bill.
