| Letter of Credit
An example of a Letter of Credit in PDF format*
This is a typical example of an Irrevocable Letter of Credit, issued
abroad in favour of an UK Exporter and payable in London.
The Exporter should remember to check the reverse of the LC as
further terms and conditions may be included there. Exporters should
also ensure that they could comply with the LC terms before shipping
Letters of Credit can be opened in either sterling or foreign
currency, depending on the currency of the invoice. From the point
of view of the UK exporter, sterling is a convenient currency, but
overseas Importers may prefer to be invoiced in their own currency.
If this is the case, the Exporter will need to consider protection
against any potential loss due to fluctuations in foreign exchange
rates during the period of the transaction.