The Documentary Letter of Credit allows the recipients to receive the credits crucial for financing a project. This makes it a very important financial instrument, especially for short-term needs. For settling the due amount, the recipients are hopeful of getting enough returns in the stated time frame. A Documentary Letter of Credit consists of all the information like the expiry information, the date and time of the letter which is required by the beneficiary on presentation. The beneficiary gets the compliant presentation which is a guarantee by the Documentary Letter of Credit for getting paid. Meeting the delivery conditions is the prime condition that needs to be met.
We at Cash Flow Provider (UK) Limited will ensure that the bank writing the Documentary Letter of Credit on the behalf of the applicant verifies that all the terms and conditions are duly met for the documentation purposes before an amount is given to the supplier. The issuing bank and beneficiary are the concerned parties for a Documentary Letter of Credit. The letter is under the control of the International Chamber of Commerce (ICC) rules and these rules are known as the Uniform Customs and Practice for Documentary Credits (UCP). Since, July 1st, 2007, the current version is into existence. The creditworthiness of the issuer comes in place of the buyer’s creditworthiness which gives the supplier the assurance that he will get paid.