The irrevocable letter of credit allows cancellation or amendments to the letter of credit by the buyer. Notably the irrevocable letter of credit can only be processed the buyers bank, seller and the sellers bank agree.
A confirmed letter of credit, is a second letter obtained by the borrower, from a second bank. The second bank promises to pay the seller if the first bank fails to do so.
A transferable letter of credit allows the first beneficiary to transfer some or all of the credit to another party, which creates a secondary beneficiary. ... an alternative option to advance payments.
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.