Okuzeka
International Trade vocabulary · Payment Methods and Letters of Credit

Advising bank

Meaning in international trade, with examples

nounCommon term

In international trade, advising bank means: A bank in the seller's country that checks that a letter of credit appears genuine and passes it on to the seller, without promising to pay.

In Turkish: ihbar bankası, bildirim bankası

How it is used

Usually the seller's own bank or a correspondent of the issuing bank. Sellers often ask the buyer to have the L/C advised 'through our bank', and the advising bank may later also act as the confirming or negotiating bank.

Example sentences

  1. Please ask your bank to send the L/C through our advising bank in Istanbul.

  2. The advising bank charged USD 150 for advising the credit.

Common collocations

  • advising bank's charges
  • advise through
  • advising bank details
  • act as advising bank
  • issuing bankThe buyer's bank that opens a letter of credit and gives its own promise to pay if the seller presents complying documents.
  • confirming bankA bank, usually in the seller's country, that adds its own promise to pay to a letter of credit, so the seller does not depend only on the issuing bank.
  • letter of creditA bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.
  • beneficiaryThe person or company that will receive the money under a letter of credit, guarantee or bank transfer; in trade it is usually the exporter.

More terms: Payment Methods and Letters of Credit

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