It is means of payment that our bank makes a commitment in written form under application of the buyer in domestic trade, and makes payment to the seller against documents in compliance with the letter of credit. Multiple financing operations would be effected thereupon under domestic letter of credit.
It meets the requirement of domestic trade settlement and financing.
The two parties in domestic trade that are not acquainted with each other intend to promote liability of the trade in virtue of bank credit; or the two parties are underfunded and require trade financing.
i.The buyer shall present《Irrevocable domestic documentary credit application》, our bank opens the L/C against cash deposit or line of credit after examination;
ii.After advising receipt of L/C, the advising bank could provide packing credit financing thereupon as required by the seller;
iii.The seller shall make shipment and present documents in accordance with articles of L/C, the presenting bank posts the documents to the issuing bank and claims reimbursement, meanwhile, it could provide such financing services as negotiation or bill purchased thereupon as required by the seller;
iv.The issuing bank shall make payment to the seller on receipt of documents after examination, and could provide bill purchase thereupon as required by the buyer.