The irrevocable letter of credit allows cancellation or amendments to the letter of credit by the buyer. Notably the irrecobal letter of credit can only be processed the buyers bank, seller and the sellers bank agree.
A conformed letter of credit is a second guarantee by the sellers bank. It adds additional security for the seller. This means that if the issuing bank of the buyer fails to make a payment the sellers bank agrees a guaranteed payment.
A transferable letter of credit can be passed from one beneficiary to another. They are commonly used when intermediaries are involved in a transaction with others are supplying the seller in the transaction.
Letters of credit at sight are payable as soon as the agreed documentation has been presented and verified, providing protection for the buyer and the seller.
Defferred or usance letters of credit means that the payment to the seller is delayed until an agreed period of time has passed.
A red clause letter of credit permits the seller to receive partial payment from the issuing bank prior to shipping products or performing the services.