Letter of Credit

Depending on the relationship between buyer and seller, the parties agree on a payment condition for the financial settlement of a goods or services transaction. In the case of a letter of credit, the banks act as guarantor towards the seller of payment of the LC amount by means of the opening/confirmation, provided that the seller has presented documents fully in accordance with the LC conditions. Transactions on an LC basis are subject to the ICC Uniform Customs and Practice for Documentary Credits, unless otherwise agreed by the parties. This payment instrument offers parties the greatest possible security when conducting import and export transactions, thanks to the payment guarantee of at least one bank (two banks in the event of confirmation). The LC section in the International Transfers Department has extensive experience in this instrument. The Credits Department is happy to advise you if you need financing for your import and/or export transactions.