Letter of Credit (LC, DLC)


A letter of credit is a commitment to pay by the buyer to the seller as long as the seller does what he/she had agreed to do within the agreed timeframe.  Letter of credit is common in international trade, and is sometimes in domestic transactions.

A bank or financial institution acts as a guarantee for payment between the buyer and seller, by producing a documentary letter of credit. The document acts as an obligation of the bank that opens the letter of credit (the issuing bank) to pay the agreed amount to the seller on behalf of the buyer, upon receipt of the documents specified in the letter of credit.

credit letter


We can assist to obtain the required documentary Letters of Credit by your company’s international trade finance needs to meet with corporate cash flow requirements.

The LCs can fulfil inventory financing needs for large and small purchase orders through purchase order financing scheme, and to provide an enhancement to current banking arrangements.  We can arrange the transfer of letters of credit, performance guarantee requirements, cash against document requests and other such trade instruments by the extensive global banking facilities of our bank vendors.