Letter of Credit Sample with its Definition

Letter of credit is the common and used letter format in business communication. So, we r are going to discuss about Letter of credit sample and definition of letter of credit. A recommendation letter that requests an individual or organization for providing any specific amount is known as letter of credit. Such a letter is written to favor business facilities and financial assistance to moving business agents. Due to mutual relation, such a letter is communicated between sender and receiver who are found to be business or personal friends. The bearer of such letter gets the benefits from the receiver of such letter-Letter of credit is of two types:

  1. Ordinary letter of credit: Such a letter is addressed to single person or organization.
  2. Circular letter of credit: Such a letter is addressed to various person or organizations.

The following matters must be included in a Letter of Credit:

  1. Receiver’s name and address
  2. Bearer’s name, address and complete identification
  3. Bearer’s attested specimen signature
  4. Objective of letter of credit
  5. Request for providing financial/help and therefore the respective limn.
  6. Proper documentation of the money receipt and forwarding of such as an evidence.
  7. Reimbursement system of the paid amount.
  8. Duration of the letter of credit
  9. Security and cautiousness.
  10. Assurance for similar future assistance.

Letter of Credit Sample:

The Omega Bank of Dhaka
Motijheel Circular Area, Dhaka.

Dec. 1st, 04

Letter of Credit
Amount: Tk. 50.000.
Valid up to: Jan 25.05

Dear Sir,

We are pleased to introduce Mr. Mijanur Rahman, sales Manager, Star Network Ltd, Dhaka, Who has been a valued customer of ours for the past ten (10) years. He is undertaking a tour of Chittagong, Khulna & Jessore to explore the possibilities of setting up distribution outlets in these districts for their computer accessories.

We request you to provide him with required funds up to Tk. 50,000 (Taka fifty thousand only) against sight drafts drawn on this office; each draft is issued by you should be clearly marked with L/C 50287.

 This L/C is valid up to Jan 25, 04 and all drafts during this period will be honored by us.

The amount of each draft should be entered on the back of this L/C.

You’re faithfully,

Khorshed Khan
Manager, Trade service
Trade service The Omega Bank of Dhaka.

A image of letter of credit sample is given below for better understanding of letter of credit sample:

Letter of Credit Sample

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2 comments for “Letter of Credit Sample with its Definition

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  2. jon
    July 29, 2013 at 3:13 pm

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