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M A I L:
 
Letter of Credit

Documentary Letter Of Credit

  • Provides an irrevocable payment undertaking between a buyer and a seller.
  • A DLC serve as a guarantee that payment will be fulfilled when (and if) the product is shipped/delivered in the terms and conditions established.
    Highly secure for both buyer and seller, since the payment is done between their banks (bank2bank).

Stand By Letter of Credit

  • Issued by a buyer's bank, serve as a guarantee to the seller in case buyer's payments fail to fullfill.
  • Most commonly used as a secondary payment mechanism for transactions, this letter acts on behalf of the seller allowing him to draw the amount of the current debt (insuring the monetary completion of a contract).

Bank Confirmation Letter

  • Provides evidence that a line of credit or loan has been secured in the buyer's bank account.
  • This letter is typically required from the seller to ensure the buyer actually has the financial capabilities to contract.

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