How to Open Letter of Credit (LC) ?

Definition of LC

LC is a abbreviation of full meaning. Which meaning is Letter of Credit (LC). Now I try know to what is meaning of letter of credit ? Actually letter of credit also know as a documentary credit or bankers commercial credit. Its is a payment mechanism which used in international trade to provide economics guarantee from a credit worthy bank to an exporter of goods.

How to Work Letter of Credit ?

If we want to know about for opening letter of credit first of all know follow chart for better understanding.

How to open Letter of Credit ?

Step: 01

• Contract With Buyer & Seller.
• Collect Proforma Invoice (P.I)

Step: 02

Now Apply to Bank for Opening Letter Credit along necessary papers.

• LC opener Forwarding.
• Proforma Invoice.
• F27 / Checklist (All Back to Back Terms & Conditions Included here)
• IMP Form 

Mandatory Necessary Papers or Information.

• Trade Incense 
• Tax Identification Number
• ERC
• IRC
• Incorporation Certificate
• Memorandam
• NID for MD

NB: Mandatory Necessary Information or Papers Onetime Submit to Bank Till Renewal Expiration.