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Letter of Credit

A Letter of Credit is a document that guarantees the buyeru2019s payment to the sellers. If the buyer is not able to pay, in that case, the bank covers full and the remaining amount on behalf of the buyer. It is issued by a bank to ensure timely and full payment to the seller. A letter of credit is issued against a pledge of securities or cash.

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Letter of Credit

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  1. Letter of Credit

  2. Letter of Credit A Letter of Credit is a document that guarantees the buyer’s payment to the sellers.  If the buyer is not able to pay, in that case, the bank covers full and the remaining amount on behalf of the buyer. It is issued by a bank to ensure timely and full payment to the seller. A letter of credit is issued against a pledge of securities or cash. LC benefit for an importer - a letter of credit ensures your company pays for goods after the supplier has provided evidence for the shipped goods. The letter of credit gives you credibility with an exporter. LC benefit for an exporter- the letter of credit is used as insurance in case the buyer fails to pay for the goods you shipped. In that case, the bank or the financial institution will cover the outstanding amount. The letter of credit also protects you against legal risks since you are ensured payment if delivery conditions have been met.

  3. LC Discounting Eligibility Criteria LC Discounting Eligibility Criteria depends on various factors like age of applicant, monthly salary or business income of co-applicant & residency, etc. • Age Limit of an Individual – minimum 22 years and maximum 65 years of age • A Good financial statement • A Credit score of 750 and above • Must be a citizen of India Required Documents • Photographs - 2 • Copy of Pan card • Aadhar Card + Passport • Address proof if rented also required permanent address proof • Last 3 years form -16, ITR with computation of income if file • Last 1 year bank statement - salary account • Loan schedule & sanction letter (if running) • Complete property papers with chain & map +ats Do you want a Letter of Credit for your company, but don’t know how to proceed? Don’t worry, Financeseva.com is here to assist you. Get access to business cash flow without impact on your balance sheet. We provide quick processing at your doorstep. Contact us for a hassle-free process.

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