Letters of Credit

TradeBank offers Letters of Credit (LCs) to ensure secure and reliable payments in international trade. A Letter of Credit acts as a guarantee that the buyer's payment to the seller will be received on time and for the correct amount, providing confidence to both parties in a global transaction. Whether you're importing goods or exporting products, our LCs mitigate risks, streamline the payment process, and enhance trust between trading partners.

Documentation Required for Letters of Credit:

1. Application for Letter of Credit: Completed and signed application form specifying the amount, currency, and terms of the LC.

2. Sales Contract or Purchase Agreement: A copy of the agreement between the buyer and seller, outlining the terms of the trade.

3. Proforma Invoice: Detailed invoice from the supplier indicating the goods, their value, and terms of sale.

4. Company Registration Documents: Copies of the company’s articles of incorporation and registration with relevant authorities.

5. Financial Statements: Audited financial statements for the last two years, including balance sheets and income statements.

6. Import/Export License: If applicable, a valid import/export license or permit required for the goods involved in the transaction.

7. Bank References: Letters from banks confirming your creditworthiness and financial stability.

8. Personal Identification: Copies of ID documents for company directors and shareholders.

9. Payment Terms Agreement: Detailed terms of payment agreed upon between the buyer and seller.

10. Shipping Documents: Bill of lading, airway bill, or other relevant transport documents, if available.

11. Insurance Policy: Insurance coverage for the goods during transit, if required.

12. Customs Documentation: Proof that the goods have been declared to customs (if applicable).

13. Collateral Documentation: Details and documentation of any collateral offered to secure the LC, if required.

14. Risk Assessment and Compliance Documents: Any additional documents required to assess risks and ensure compliance with international trade regulations.

This documentation helps TradeBank assess the transaction's legitimacy and the associated risks, ensuring that the Letter of Credit is issued in a manner that protects both the buyer and the seller in international trade.