Document background
The Letter of Credit is a crucial trade finance instrument used in international commerce to mitigate payment risks. When using an LC Letter of Credit under Singapore jurisdiction, the document provides a bank's commitment to pay the seller upon presentation of compliant documents, regardless of disputes between buyer and seller. It's particularly relevant in Singapore's position as a major trade hub, operating under both local banking regulations and international standards like UCP 600. The document typically includes detailed terms about payment conditions, required documentation, timeframes, and compliance requirements, offering security to both parties in cross-border transactions.
