Okuzeka
International Trade vocabulary · Payment Methods and Letters of Credit

Beneficiary

Meaning in international trade, with examples

/ˌbenɪˈfɪʃieri/nounCommon term

In international trade, beneficiary means: The person or company that will receive the money under a letter of credit, guarantee or bank transfer; in trade it is usually the exporter.

In Turkish: lehdar, alacaklı, ödemeyi alacak taraf

How it is used

Common in L/C texts ('beneficiary's certificate', 'documents to be presented by the beneficiary') and in payment instructions ('beneficiary name', 'beneficiary bank'). In Turkish banking the usual word is 'lehdar'.

Example sentences

  1. The beneficiary's name in the L/C is misspelt; please ask for an amendment.

  2. The beneficiary must present the documents within 21 days after shipment.

Common collocations

  • beneficiary's certificate
  • beneficiary bank
  • beneficiary name
  • second beneficiary
  • applicantIn a letter of credit, the buyer who asks its bank to open the credit in favour of the seller and who will pay the bank in the end.
  • 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.
  • exporterA person or company that sells goods to buyers in other countries and usually handles the export side of the shipment.
  • issuing bankThe buyer's bank that opens a letter of credit and gives its own promise to pay if the seller presents complying documents.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Payment Methods and Letters of Credit

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level: