Letters of Credit

A bank's payment undertaking to your supplier, released only once the agreed shipping and delivery documents are presented — the standard way to pay with confidence for goods you haven't yet received.

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WHO IT'S FOR

Built for secure trade payments.

Importers & trading companiesPaying overseas suppliers on terms a bank stands behind, rather than wiring funds on trust.

Developers procuring materialsSecuring payment terms for plant, fit-out materials and equipment sourced internationally.

First-time supplier relationshipsBuilding trust with a new supplier before a direct trading history exists.

Contractors on tendered projectsMeeting a procurement requirement that specifies payment by letter of credit.

TERMS & THE NUMBERS

Where this typically lands.

Indicative figures: every case is confirmed against the specific bank, transaction and applicant profile.

10–30%Margin cash cover, depending on relationship

Sight or 30–180 daysUsance term available on request

5–10 daysTypical issuance once terms are agreed

AED 100K+Typical minimum transaction size

HOW IT WORKS

From agreement to payment.

Sales contract agreedTerms, price and shipping documents required are agreed directly with your supplier.

LC application & bank approvalWe prepare the application and the bank confirms your credit line or margin cover.

LC issued & advisedThe bank issues the letter of credit to the supplier's bank, who advises it to the supplier.

Shipment & documents presentedThe supplier ships the goods and presents the agreed documents to their bank.

Payment against compliant documentsOnce documents match the LC terms exactly, the bank releases payment — sight or on the agreed usance date.

A NOTE FROM THE DESK

“A letter of credit is only as strong as its wording. We draft it to match the shipping documents your supplier will actually produce, not a generic template.”

FREQUENTLY ASKED

Common questions.

What's the difference between a sight and a usance LC?

A sight LC pays the supplier as soon as compliant documents are presented. A usance LC defers payment to an agreed date after presentation — commonly 30 to 180 days — giving you time before funds leave your account.

What is a confirmed letter of credit?

A second bank, usually in the supplier's country, adds its own payment undertaking alongside the issuing bank's. It costs more but gives the supplier extra confidence when they don't know your bank well.

What does it cost?

Fees combine an issuance charge, a margin held as cover, and document-handling costs at each bank. We compare panel banks so you're not paying more than the transaction needs.

Ready to open a letter of credit?

Share the supplier contract and shipping terms and we'll confirm which panel bank can issue on the terms you need.