International traders use two legal bank documents known as “Letter of Credit” and “Standby Letter of Credit” for trade. Letter of Credit is issued by a bank guaranteeing that the seller will receive the payment from the buyer on time and with the correct amount. If the buyer is not able to make a payment the bank covers the full or the remaining amount of the goods purchased. The use of a Letter Of Credit has become a very essential aspect of international trade due to the factors such as distance, different laws in different countries, and difficulty in understanding both parties personally.