Letter of Credit (Documentary Credits) allows you to collect monies owed to you by a buyer, against delivery of certain documents. A commitment by a bank to pay a seller of goods/services a specific amount of money provided the seller conforms to the terms contained in the credit agreement.
If it is the first time that your business is applying for the issue of a Letter of Credit, you would be expected to complete a General Indemnity for Documentary Credits
You also need to complete an application form for each Letter of Credit to be issued
The bank will also ask for a copy of the proforma invoice or underlying sales contract to ensure that the terms and conditions of the Letter of Credit is in line with the relevant terms of the contract