Letter of credit L/C

A letter of credit is a contractual obligation of a bank to make a specified monetary payment to the named beneficiary (usually an exporter or seller) on behalf of, for the account of, and on the instructions of a customer (usually the buyer) against presentation of specified documents and upon fulfillment of specified conditions within a specified period of time.


A letter of credit is always issued by a buyer's bank and promises to make payment to the seller upon presentation of the specified documents. It serves as a security for the seller that he will receive the payment once he has fulfilled the conditions stated in the letter of credit and handed over the relevant documents.

LC Letter of Credit
LC Letter of Credit

Security and Trust through Letters of Credit in the Global Economy

International trade often poses challenges to businesses, especially when it comes to payment security and building trust. Here, the letter of credit offers a reliable solution. As specialists in trade finance, we explain how the letter of credit can make your business transactions safer and more efficient.

What is a Letter of Credit?

A letter of credit, also known as a documentary credit, is a payment promise issued by banks that guarantees payment security in international trade. It ensures that payment to the seller is made only when the agreed conditions are met and the relevant documents are presented.

Advantages of the Letter of Credit

Payment Security: For sellers, the letter of credit offers high security as payment is guaranteed once the delivery conditions are met.


Risk Minimization: For buyers, the letter of credit minimizes the risk as payment is made only if all agreed conditions are met.


Trust Building: Letters of credit facilitate business between unknown parties and build trust in new markets.


Flexibility: There are various types of letters of credit that can be customized as needed, including transferable, confirmed, and revolving letters of credit.

The Letter of Credit Process

The process of a letter of credit is clearly structured. After concluding the sales contract, the buyer requests their bank to open a letter of credit. The bank then informs the seller's bank, which notifies the seller of the letter of credit. After the goods are delivered and the required documents are presented, payment is made.

Letters of Credit in Practice

In practice, the letter of credit is an essential tool for businesses operating in international markets. It provides a solid foundation for secure and successful business relationships. As your partner, we support you in finding the right letter of credit for your specific requirements.

Your Expert for Letters of Credit

Our team of experienced specialists is here to assist you with all aspects of letters of credit. We offer advice and support in selecting, drafting, and executing letters of credit to facilitate and secure your international trade. Contact us to learn more about our services in the field of letters of credit and how we can help your business operate more securely and successfully worldwide.


Disclaimer: The information provided on this website is created and maintained to the best of our knowledge and belief. However, we do not guarantee the accuracy, completeness, or timeliness of the information. Any use of the information is at your own risk. We reserve the right to make changes or corrections at any time without prior notice. Under no circumstances shall we be liable for any damages arising from the use of the information provided on this website. Please note that we are not responsible for the content of external websites linked from our website. We do not guarantee the accuracy, completeness, or timeliness of the information provided on these websites.

© 2024 CSI GmbH, Munich. All rights reserved.

The contents of this website, including texts, graphics, images, and other materials, are copyrighted and are the property of CSI GmbH, based in Munich. Any use, reproduction, modification, distribution, transmission, republication, downloading, or copying of these materials, whether in part or as a whole, without the express written permission of CSI GmbH, is strictly prohibited. This includes all contents that were specifically created for CSI GmbH, as well as those produced and provided by third parties on behalf of CSI GmbH. The use of the contents presented on this website for commercial purposes or for dissemination on other websites or media platforms is not permitted without prior written consent from CSI GmbH.

Kontakt / Contact

CSI-GmbH International Logistics

Cargo Modul C / 4. Floor

Munich Airport / GERMANY

Tel: +49 89 9733 044 10









CSI auf YouTube
CSI auf LinkedIn
CSI auf Facebook
CSI auf X
CSI auf X