Letter of Credit (LC)
As an entrepreneur, you may find yourself in need of some kind of proof required by a foreign supplier, confirming your capacity to pay for the goods to be delivered. For this purpose, you can apply for a LC (Letter of Credit), also called a documentary credit, at VCB Bank.
A documentary credit is a certification whereby the bank, following your request thereto, binds itself towards your foreign supplier of certain goods, to pay off a specific amount, after submission of a specified number of documents.
A few examples of a LC are:
- it can be regarded as the safest means of payment between two parties involved in an international transaction
- you are granted a guarantee, based on the exchange of documents, that the procured goods are in conformity with your order.
Are you interested or do you want more information, please contact one of our account managers at the head office or one of our branches.