The Documentary Letter of Credit known as LC or DLC is a written undertaking given by a bank to the seller (beneficiary). The Letter of Credit or Documentary Credit is a technique for financing international trade by which a bank (issuing bank) takes the irrevocable commitment, at the request and for the account of its client (applicant), to pay the exporter (beneficiary) against the handing-over of various documents complying with the terms of the credit, posting freight forwarding and the nature of the goods stipulated in the pro-forma invoice or commercial contract within a set time limit.

The beneficiary of Letters of Credit may also obtain from their bank a credit line or packing credit to mobilize their export. The customer’s bank will receive the advance funding from the proceeds of the Letter of Credit once it is negotiated. Global Platform Services provides irrevocable, transferable Letters of Credit (MT-700) on demand for importers who do not have enough cashflow or bank facilities to run their business.