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Applicant(buyer) |
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The buyer completes a contract with the seller and fills in a letter of credit application form and sends it to his
or her bank for approval. |
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Issuing Bank(Buyer's Bank) |
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The issuing bank approves the application and sends the letter of credit
details to the selleršs bank (advising bank). |
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Advising Bank |
|
The advising bank authenticates the letter of credit and sends the
beneficiary (seller) the details by post or fax. |
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Beneficiary(seller) |
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The seller examines the details of the letter of credit to make sure that he
or she can meet all the conditions. If necessary, he or she contacts the
buyer and asks for any necessary amendments to be made. |
