Parties to a Letter of Credit | Letter of Credit Parties

Following persons are generally parties, to a letter of Credit:


The exporter of goods in whose favour the L/C has been established.

Customer / importer

The person we intends to import the goods and instructs bank to established Letter of Credit.

Issuing Bank

The Banker in the importers Country who opened the L/C.

Correspondent Bank or Advising Bank

The banker in the exporters country, who is authorised by the issuing bank to advise the beneficiary of the Credit and to effect such payment or to accept and pay such bills of exchange or to negotiate against Stipulated documents and on Compliance of Stipulated terms and condition specified by the importer on the exporter.

Confirming Bank

The banker in the exporters(beneficiary) country, who at the desire of the beneficiary adds confirmation to the letter of Credit so that beneficiary can get payment without recourse from the Confirming bank. The Confirming bank may be correspondent bank itself or some other bank.