Online Banker’s Guarantee
Provide assurance to your suppliers when they present the required documents
Build relationships with clients and support new business opportunities with a LFTL Letter of Credit. We issue a Letter of Credit at your request, assuring payment up to a stated amount within a prescribed time. We then check that the documents received are in compliance with the Letter of Credit terms and certify them before you make payment.
HOW DOES LETTER OF CREDIT WORKS?
1- The buyer and seller enter into a contract and agree that payment be made on the basis of Letter of Credit
2- Buyer approaches LFTL (issing institution) to issue Letter of Credit in favour of the seller
3-LFTL issues contacts a financial institution to secure the Letter of Credit which is advised through its branch or correspondent bank (advising bank) in the seller’s country
4- Advising bank advises Letter of Credit to the seller on behalf of LFTL
5- Upon receipt of the Letter of Credit, the seller prepares shipment and delivers documents to presenting bank
6- Presenting bank despatches documents to LFTL for payment
a. LFTL pays the presenting bank upon verifying the documents are in order
b. Upon receipt of payment, presenting bank pays the seller
8- Buyer pays the document amount to LFTL
9- LFTL forwards the documents to the buyer, who can now use them to obtain the goods
To apply for a Letter of Credit, kindly click on fill Online Application below