A more thorough explanation:

An advice of credit is a notification sent by an advising bank to inform the beneficiary that a letter of credit has been issued. The advising bank acts as an intermediary between the issuing bank and the beneficiary, providing guidance and assistance throughout the transaction process.

For example, if a company in the United States wants to purchase goods from a supplier in China, they may use a letter of credit to ensure payment and delivery. The issuing bank in the United States would send an advice of credit to the advising bank in China, who would then notify the supplier that the letter of credit has been issued and provide instructions on how to proceed with the transaction.

Another example could be a company in Germany that wants to import raw materials from a supplier in Brazil. The issuing bank in Germany would send an advice of credit to the advising bank in Brazil, who would then inform the supplier of the letter of credit and provide guidance on how to fulfill the terms of the transaction.

Overall, an advice of credit is an important communication tool that helps facilitate international trade and ensures that all parties involved in a transaction are aware of the terms and conditions of the letter of credit.