How Do You Obtain An Irrevocable Letter Of Credit?
A letter of credit is a legally binding letter that a bank or financial institution issues on behalf of a buyer as part of an international transaction. For example, if you are a U.S. business owner who is buying a shipment of products from a company in South America, the bank issues a letter of credit that guarantees payment on the shipment to the selling company once the seller produces proof the shipment has been sent. An irrevocable letter of credit is one that includes a provision that guarantees the payment and cannot cancel the agreement. Contact your business bank. Call or visit your business banker to let them know you need to obtain a letter of credit that is irrevocable. You need to provide details to the banker, including the name, address and contact information for the selling business, as well as the terms of the agreement. Deposit the amount of the payment in a bank account. Before the banker issues the irrevocable letter of credit, he or she requires that you deposit t
