It is a bank-guaranteed payment method where payment of a specific amount mentioned in the LC text is undertaken by the bank in case the conditions specified in the LC text are fulfilled. Importer’s bank acts as an intermediary between the importer and the exporter. An irrevocable payment undertaking arises for the issuing bank. The issuing bank is obliged to effect payment once the exporter fulfills whole conditions. Letters of Credit are also relevant for financing the transactions between domestic companies where seller can approach their bank to collect receivables before the maturity date via discounting credit conform documents. Kindly contact our Bank, for all your questions and further financial solutions under letters of credit.