A Letter of Credit is a special type of bank guarantee that confirms the bank's promise to pay the seller (beneficiary) on behalf of the buyer (applicant) a specified amount of money that covers the purchaser's contractual obligations. If you are looking for a Letter of Credit template suitable for your situation, you may check out our library below.
Whether the parties engage in international trade where the goods are delivered for a certain sum of money or there is a performance transaction and the contractor must work on a building project, a Credit Letter serves as a guarantee that both parties intend to carry out their contractual duties and are prepared to enlist the support of a financial institution to show their goodwill.
Below you can find the most commonly used Letter of Credit templates - ensure the full and timely payment to the beneficiary of the contract and build a trusting relationship with your business partner.
Each document is unique, and it is up to the bank to determine which provisions are listed in the final version of the letter. However, at a minimum, consider including the following details in your Letter of Credit:
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