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Difference between Letter of Credit (LC) and Bank Guarantee (BG)

Both LC and BG are financial instruments meant for mediating between two parties who don't trust each other fully but still need or want to work with each other. But the method in which the payment gets affected in an LC and a BG is what the main conceptual difference between the two is. In this video, we see the process of working of an LC and a BG simultaneously and understand the difference in working of the two. ⭐️⭐️Our courses are chosen by international banks and corporates to train their employees. 🚀For our trade finance courses - https://www.bankon.school/courses/tra... ⚡️For Bank Guarantee course - https://www.bankon.school/courses/ban... ✅For our SWIFT ISO 20022 courses - https://www.bankon.school/courses/swi... SUBSCRIBE HERE - https://bit.ly/2Xu68WD WATCH OUR LATEST VIDEO HERE - https://bit.ly/latesttutorial #letterofcredit #bankguarantee #tradefinance