Letter of Credit

A letter of credit is a payment instrument regulated by international standard.

Product

A letter of credit or a documentary credit is a written undertaking of a bank on the instructions of the applicant (buyer) to pay a specific amount to the beneficiary (seller) against the documents stipulated in the letter of credit provided the beneficiary submits the documents in conformity with the terms and conditions of the letter of credit.

Letters of credit are subject to “Uniform Customs and Practice for Documentary Credit” (UCP), International Chamber of Commerce Publication No 600.