Advising bank
An advising bank is a financial institution that advises the beneficiary (usually the seller) of a letter of credit issued by the buyer’s bank. The advising bank confirms the authenticity of the letter of credit and provides information on its terms and conditions, facilitating international trade transactions.
Related glossary terms
Letter of credit (L/C)
Letter of credit (L/C) is a bank-issued guarantee that assures a seller payment once specific shipment and documentation conditions are satisfied by the buyer.
Commercial Invoice
Commercial invoice is the document used to declare cargo value, parties, and terms for customs. Learn required fields, duties impact, and common mistakes.
Draft
Draft in international trade is a payment order payable at sight or at a future date. Learn how sight drafts, time drafts, and acceptance work in shipping.
Consignee
Consignee is the party named on the bill of lading to receive the shipment. Learn responsibilities, customs roles, and how consignee differs from notify.
