Letter of Credit (L/C)

In international trade, a Letter of Credit (L/C) serves as a financial instrument that guarantees payment to the seller of goods upon the fulfillment of agreed-upon conditions. The buyer's bank issues an L/C to the seller's bank, acting as an irrevocable undertaking to honor the payment obligation. This mechanism safeguards both parties involved in the transaction.

A supplier may request an L/C to secure payment for the goods they provide. This instrument offers protection against non-payment, ensuring that the seller receives the agreed-upon amount upon fulfilling the specified conditions.

At Finabank, we recognize the importance of L/Cs in facilitating seamless international trade. Our experienced team is well-versed in handling L/C transactions, ensuring that your business operations run smoothly.

The term of an L/C is determined by the terms and conditions agreed upon between the buyer and the seller. This typically includes the timeframe for the seller to present the required documents to the bank and the bank's deadline for making the payment.

For more information or to request a personal appointment with our specialized team, please contact us via: energy@finabanknv.com