Transferable Letter of Credit

A Letter of Credit, also known as Documentary Credit, is an instrument for settling trade payments. It is an arrangement by means of which the bank (Issuing Bank) acting at the request of the customer (Applicant), undertakes to pay to a third Party (Beneficiary) a predetermined amount on a given date according to agreed stipulations and against presentation of stipulated documents.

In International Trade, Documentary Credits are an ideal instrument of settling International Trade Payments, considering the complexities of trade requirements of both seller and buyer.