Documentary letters of credit are the safest means for international trade settlement both for importers and exporters of goods. Besides settlement using export and import letters of credit, our customers can also use transferable and stand-by letters of credit.
DLC is an obligation of the bank that opens the letter of credit (the issuing bank) to pay the agreed amount to the seller on behalf of the buyer, upon receipt of the documents specified in the letter of credit. The letter of credit is opened by the bank on the basis of the buyer’s (importer’s) instructions, which are compiled in accordance with the terms of the contract. Both the importer and exporter should take into account that the letters of credit constitute a transaction separate from the purchase and sale agreement or other agreements on which they are based. The bank’s obligations under the letter of credit are set forth in the letter of credit itself, and the bank deals exclusively with documents, not with goods or services.
The Documentary Letter of Credit known as LC or DLC is a written undertaking given by a bank to the seller (beneficiary) of goods or services. When you want a Bank Guarantee Funded or to Sell a Bank Guarantee, our Funder sends the below Payment Guarantee to the BG Issuing Bank. It is one of the most secure, safe and powerful payment guarantees you can get because the Funders Bank endorses and stands behind the Payment Guarantee with ´Full Banking Responsibility & Liability there bank commits to make the payment because they stand behind it with ´Full Banking Responsibility & Liability´