A Letter of Credit (LC) is a financial document issued by a bank that guarantees payment to the seller, provided the seller meets all the specified terms and conditions of the trade agreement. It serves as a secure method of payment in international trade, offering protection to both buyers and sellers. At MET Holding, we assist businesses in obtaining Letters of Credit (LC) from rated banks, ensuring secure transactions without the need to block cash funds. Our expert team guides clients through the process, helping them facilitate smooth trade deals with financial assurance and peace of mind.

Letter of Credit (LC) Process at MET Holding

At MET Holding, we specialize in providing expert consultancy and support for businesses involved in imports and exports. We assist with the issuance of Documentary Letters of Credit (LC) to ensure secure trade transactions, giving both importers and exporters the confidence to conclude deals with financial security.

To avail of LC assistance through MET Holding, please follow the simple process outlined below:

1. Initial Request Submission
The buyer submits their LC request along with the relevant Sales and Purchase Agreement or proforma offer, outlining the terms of the trade deal. The buyer also specifies the required LC amount and tenure.

2. Review and Approval
Our experienced team at MET Holding carefully reviews the trade deal between the buyer and seller to ensure all terms align with the requirements for issuing an LC. After the review, we will inform the buyer about the approval of their request.

3. Service Agreement and Admin Charges
If the request is approved, we proceed to sign a service agreement with the client. At this stage, the buyer is instructed to pay the applicable administrative charges to initiate the LC transaction and move forward with the process.

4. Structuring and Documentation
Upon receiving the admin charges, we will structure the LC and provide the buyer with a draft for their review and approval. Concurrently, we will assist the buyer in providing all the necessary documents required for the LC issuance. The buyer will also be informed of the issuance fee, which is needed to proceed.

5. Finalizing and Issuance of LC
Once the draft is approved and the issuance fee is paid, we will instruct our partner bank to issue the Documentary Letter of Credit. The LC will be issued via authenticated SWIFT MT700, ensuring the trade is secured and compliant.

MET Holding offers comprehensive banking consultancy throughout this process, ensuring that all documentation is in order and guiding our clients to successful and secure trade deals.