Letters of Credit

This is one of the methods of payment in settling international trade obligations. Essentially, it is a written undertaking given by a bank at the request of a customer (applicant), in which the bank obligates itself to pay the exporter (beneficiary) up to a stated amount within a prescribed time frame upon presentation of stipulated documents that conform to the terms and conditions of the documentary credit. In Guaranty Trust Bank, we offer two types of LCs:

•          With Funded LC, the funds are wholly provided by the customer (applicant).
•          Un-funded LC, is funded by the bank with some equity contribution from the applicant.