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• The buyer & seller enter into a contract & agree that payment will be made basis Letter of Credit (LC).

• The buyer approaches the issuing Bank to issue LC in favour of seller.

• Issuing Bank issues LC which is advised through its branch or correspondent bank (advising bank).

• The advising bank advises LC to the seller.

• Upon receipt of LC, the seller prepares shipment & delivers documents to the presenting bank (which could also be your advising bank).

• The presenting bank dispatches documents to Issuing Bank for payment.

• Issuing Bank pays the presenting bank upon verifying that the documents are in order as per terms and conditions of the LC.

• Upon receipt of payment, the presenting bank pays the seller.

• Issuing Bank forwards the documents to the buyer, who can now use them to obtain the goods.

T&C apply