Letter of Credit

Letter of Credit LC Facility in UAE Trade Finance

Letter of Credit – LC Facility in UAE- Trade Finance

A Letter of Credit is a written undertaking by a Bank issued at the request of an applicant (Importer) to pay a fixed sum of money at a specific date to a specific party (Beneficiary/Exporter) subject to the receipt of specified commercial and/or financial documents listed in the Letter Of Credit.

The Bank almost always issues Irrevocable Letters of Credit, the terms of which cannot be amended after issuance until the beneficiary, the applicant and the Bank agree to the changes. UAE Banks issues LCs in accordance with Uniform Customs and Practices for Documentary Credit Publication No 500 of the International Chamber of Commerce.

 

6 thoughts on “Letter of Credit”

  1. Dear Sir/Madam,

    We are having our export import company registered in Mumbai India. We are discussing the deal with one of the Malaysian buyer for supply of Indian Spices, bath soap & prayer products. Buyer doesn’t have limits in his bank. 

    Kindly reply if you can arrange 3rd party who can issue the LC on behalf of Malaysian buyer. Payment terms 60 days from BL date.

    Looking for your kind reply soon.

    With Best Regards, 

    Mr. Rajesh Patel

    Sadhi Goga Multi Venture

    Mumbai,  Maharashtra, 

    India

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