Letter of Credit Process — Step-by-Step Flow Chart

How a documentary credit moves between buyer, seller and banks — from contract to payment, step by step The parties. **Applicant** — the buyer, who asks its bank to issue the credit. **Issuing bank** — the buyer's bank, which gives the irrevocable undertaking to pay. **Beneficiary** — the seller. **Advising bank** — a bank in the seller's country that authenticates the credit and passes it on. **Confirming bank** — a bank that adds its own undertaking, if asked. **Nominated bank** — the bank the credit makes available with, to pay, accept or negotiate. Letter of credit process flow. If the documents do not comply. Go further. Frequently Asked Questions.

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