Letter of Credit

The letter of credit is a bank commitment / bank guarantee that the payment will be made by a bank within the framework of the request and the conditions of the recipient, provided that the documents regarding the realization of the goods and services are made within the given time and the required conditions are met.

• Letter of credit, which is accepted as a guaranteed payment instrument in international trade and is preferred frequently, is a transaction that protects both the importer and the exporter.
• The importer is under protection as the payment will not be made to the other party before the goods delivery or service process is completed.
• The exporter can receive the payment by presenting the documents to the bank in accordance with the letter of credit terms at the end of the delivery or service period.