how is a letter of credit issued and confirmed?

Answer 1

A letter of credit is issued & confirmed by a bank; - it's an agreement between an importer & exporter that a certain sum on money will be paid on a certain date. Contact your Bank for advice

Answer 2

No 1 , make sure you aware exactly how to trade as i assume that is what you are doing. If you do not know how international trade works and the language do not go ahead and buy something from a foreign country. If you do and you dont know what you are doing you could be up for thousands or more.


A letter of credit is a document typically issued by a bank or financial institution, which authorizes the recipient of the letter (the "customer" of the bank) to draw amounts of money up to a specified total, consistent with any terms and conditions set forth in the letter. This usually occurs where the bank's customer seeks to assure a seller (the "beneficiary") that it will receive payment for any goods it sells to the customer.

For example, the bank might extend the letter of credit conditioned upon the beneficiary's providing documentation that the goods purchased with the line of credit have been shipped to the customer. The customer may use the letter of credit to assure the beneficiary that, if it satisfies the conditions set forth in the letter, it will be paid for any goods it sells and ships to the customer.

In simple terms, a letter of credit could be said to document a bank customer's line of credit, and any terms associated with its use of that line of credit. Letters of credit are most commonly used in association with long-distance and international commercial transactions.

Confirmed Letter of Credit
A letter of credit, issued by a foreign bank, which has been verified and guaranteed by a domestic bank in the event of default by the foreign bank or buyer. Typically, this form of letter of credit will be sought when a domestic exporter seeks assurance of payment from a foreign importer.

Answer 3

When you get it then make it out to me and i,ll confirm that it,s a good one

Answer 4

Not sure read some credit tips on this site

Answer 5

A buyer approaches his bankers and requests them to issue a letter of credit in favor of seller of goods (usually in a foreign country), undertaking to release payment to seller upon receipt of documents evidencing shipment of goods. Seller in turn gives this letter to his own bankers to verify status of buyer's bankers. When seller's bankers agree to release payment to him upon receipt of documents evidencing shipment of goods, then they are said to have confirmed it. Thereafter seller ships the goods, produces documents to his bankers who release payment immediately. Seller's bankers send documents to buyer's bankers, who release payment to seller's bankers. Upon receipt of payment from buyer, buyer's bankers release documents to him. With documents, buyer takes delivery of goods.

Answer 6

this is to do with shipping and buying goods from abraod, what u need is a good shipping agent, like meeeeeeeeeeeeeeee, email me and ill go through it with u