A Letter of Credit at Sight is a Letter of Credit (LC) that is meant to be paid as soon as the letter is sent – within five to ten days – after the seller meets the conditions laid down in the Letter of Credit. It is a commercial type of letter that a financial institute issues mainly in trade finance, which generally arranges for an undertaking of certain payment if accompanied by necessary documents. This type of Letter of Credit is the quickest form of payment for sellers, who often sell products to overseas buyers. The Letter of Credit at Sight is an application given to the buyer by the seller, asking for the payment required.
This letter of credit is not part of the other contracts of the transaction, though both the buyer and seller must agree to it. It can be used for national or international business but is used more in international sales transactions as takes the risk away from the buyer and seller by having a bank involved in the transaction.
Letter Of Credit At Sight Writing Tips:
- Write everything in detail, the amount, payment mode. Etc.
- Mention the documents you have enclosed along with the letter.
- Assure that you agree to all the mentioned terms and conditions.
- Be very professional and simple in tone.
Letter Of Credit At Sight Template
Use our free Letter of Credit at Sight to help you get started.
From,
____________
____________
Date : ________ (date on which the letter is written)
To,
____________
____________
Subject: Letter of Credit at Sight.
Dear _____ (Sir/Ma’am),
I am ____(name) writing this letter to you to let you know that _____(name of the company) is in line with all the terms and conditions and we desire to purchase material from the company. We accept all the terms and conditions mentioned by the company. Therefore request you to kindly engender a non-changeable credit number that is to be given to ______(name of the company) against the amount not to exceed ____(amount).
We have enclosed all the necessary documents. We assure you to gratify all the terms and conditions as and when the submission of the documents is made. You are requested to present all the documents for the payment before _____ days (number of days) from the shipment date. Waiting for a positive response from your side.
Thanking you,
Yours Sincerely,
__________ (Name)
__________ (Signature)
Sample Letter
From,
Emma Harington,
Sales Manager,
Pearson Specter Inc.
6 January 2017
To,
Daniel Madden,
Senior Partner,
Darby Foundation.
Subject: Letter of Credit at Sight
Dear Sir,
This letter is written to you to make you aware that Pearson Specter Inc. will act by the regular terms and conditions and that we wish to buy the material from your company. We agree to the rules and regulations that are specified by the company. We hereby request you to generate a non-changeable credit number for the account of Pearson Specter Inc. in support of the amount agreed upon, $15, 000.
We have already submitted all the relevant documents, like a copy of the material list, signed commercial invoices, documentary credit number, insurance policy coverage, shipment notices, fee payment instruction, etc. We promise you that we will fulfill all the terms and conditions after the documents are submitted as mentioned before the due date given. Kindly bow to all the documents for the payment within twenty days after the date of consignment. Looking forward to a positive reply from your end.
Thanking you,
Yours Sincerely,
Emma Harington.
Email Format
The following is the Email format that should be followed while writing a Letter of Credit at Sight.
To: name@email.com
From: name@email.com
SUBJECT: Letter of Credit at Sight
Dear _____ (Sir/Ma’am),
I am ____(name) writing this letter to you to let you know that _____(name of the company) is in line with all the terms and conditions and we desire to purchase material from the company. We accept all the terms and conditions mentioned by the company. Therefore request you to kindly engender a non-changeable credit number that is to be given to ______(name of the company) against the amount not to exceed ____(amount).
We have enclosed all the necessary documents. We assure you to gratify all the terms and conditions as and when the submission of the documents is made. You are requested to present all the documents for the payment before _____ days (number of days) from the shipment date. Waiting for a positive response from your side.
Thanking you,
Yours Sincerely,
__________ (Name)
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