Financial Consultation Services - Letter of Credit

Merchantcreditcorp25 Sep, 2021Business

A Commercial Letter of Credit (LC/DLC) is a vital letter or instrument that is issued by the issuing bank. This letter ensures that the beneficiary will be paid as per the agreed contract once the goods are shipped. To conduct international trade, both parties, i.e., the applicant and the beneficiary need to establish a trading agreement. Once the agreement is in place, the applicant will request the issuing bank to issue a Letter of Credit to the beneficiary.