Letter of Credit | Luminor

Letter of Credit is a secure solution for your business with new partners, transactions for equipment or customized goods supply and in case the economic or political situation in the partner country is unstable.

Benefits for the buyer:

Benefits for the seller:

How can the buyer apply for the Letter of Credit?

1

Agree with your partner on the type of payment

Sign the agreement providing the conditions for payment by the Letter of Credit

2

Submit the application

Submit to us an application on the Letter of Credit and required documents

3

Conclude the agreement

Conclude the agreement on the Letter of Credit and ensure the funds on your account or enter into an agreement on the line to use the Letter of Credit and collateral agreements 

4

We send the Letter of Credit to the seller’s bank

The bank sends the Letter of Credit to the seller’s bank to communicate it to your partner. After the dispatch of goods and submission of documents to the partner’s bank, we receive these documents from the seller’s bank

5

We check the documents and make payment

If the goods’ delivery documents are compliant with the Letter of Credit we make the payment and deliver the documents to you. 

Required documents

  • Application for issuance of the Letter of Credit
  • Passport or eID card of the company’s representative
  • Information on the transaction

    Unless the security is money deposited on the account, the following documents should be submitted in addition:
  • Financial reports for the last two years and operational results (including specifi-cation of debitors and creditors accounts)
  • Valuation of the collateral

Trade financing easy way!

See also: Documentary CollectionGuaranteeCredit lineFactoring

NB!
Letter of Credit is governed by the “Uniform Cus-toms and Practice for Documentary Letters of Credit” No. 600 of the International Chamber of Commerce (unless stipulated otherwise)