Our letter of credit service

LETTER OF CREDIT

How does it work

Because a letter of credit is typically a negotiable instrument, the issuing bank pays the beneficiary or any bank nominated by the beneficiary. If a letter of credit is transferable, the beneficiary may assign another entity, such as a corporate parent or a third party, the right to draw {Note: Financial Institution typically require a pledge of securities or cash as collateral for issuing a letter of credit.}.


Banks also collect a fee for service, typically a percentage of the size of the letter of credit. The International Chamber of Commerce Uniform Customs and Practice for Documentary Credits oversees letters of credit used in international transactions. There are several types of letters of credit available.

About the service

Letters of credit are typically provided within five to ten business days, guaranteeing payment by our confirming issuing bank branch. This benefit is especially valuable when a client is located in a potentially unstable economic environment.


  • A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.
  • There are many kinds of letters of credit, including one for travelers.
  • Banks collect a fee for a letter of credit service, typically a percentage of the size of the letter of credit.


Our letters of credit help exporters minimize the importer’s country risk and the issuing bank’s commercial credit risk. Also there is a direct payment method in which the issuing bank makes the payments to the beneficiary. In contrast, a standby letter of credit is a secondary payment method in which the bank pays the beneficiary only when the holder cannot.

Other services

Standby Letter of Credit (SBLC)

Standby letter of credit is a commitment of payment to a third party in the event that the client defaults on an agreement. Our company issue such financial instruments to reassure a seller that it can pay.

Bank Guarantee

Bank guarantee is usually leased to a third party for a specific fee. as a result of these the issuing bank will conduct due diligence on the creditworthiness of the customer before starting the process.

Letter of Credit (LC)

Due to the nature of international dealings, including factors such as distance and differing laws in each country, the use of letters of credit has become a very important aspect of international trade.

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