Payment Methods: Letter Of Credit (Confirmed, Sight)

1. Exporter and Importer sign the purchase contract
2. Importer requests for Letter of credit (LC) and release funds to its Bank
3. Importer’s Bank Issue LC and sends it to the Confirming Bank
4. Confirming Bank adds its confirmation to the LC and forwards it to the Exporter’s Bank
5. Exporter’s Bank advises the LC the Exporter
6. Exporter ships the goods to the Importer
7. Exporter forwards shipping documents to its Bank
8. Exporter’s Bank forwards shipping documents to the Confirming Bank
9. Confirming Bank transfers the funds to the Exporter’s Bank
10. Exporter’s Bank pays the Exporter
11. Confirming Bank forwards shipping documents to the Importer’s Bank
12. Importer’s Bank release the shipping documents to the Importer
13. Importer clears its goods using the shipping documents