The letter of credit format is different for each type of letter. These are to be written in a professional tone. The format contains the introduction, name, address, date, subject, salutation, main body and finally the closing part of the letter. This format has to be followed to make the letter impressive and effective. The main purpose of a letter of credit is to ensure successful business transactions between sellers and buyers and also make an agreement that you shall pay for all the commodities.
You’ll also pay a fee for this employment. The bank then makes a reconciliation to pay the dealer as long as they agree to the conditions outlined in the document. The proper documentation must be provided, and the formal tone must be adapted to winding up the letter. Letters of credit come in several structures, including revocable, irrevocable, confirmed, transferable and back-to-back documents. Here are few samples, template for credit letters.
Letter Of Credit Format Writing Tips
- The format has to be very simple. The format should not be the same for all kinds of letters like personal or official letters.
- Write the important points that have to be kept in mind while writing any letter.
- You have to mention all the details in the letter like the terms and conditions, the due date, the amount, etc. You have to write about the due date extension also.
- The letter must be formatted in a formal tone and a professional manner.
Letter Of Credit Format Template
Use our free Letter of Credit Format to help you get started.
From
_____________ (Name of the sender)
_____________(Address)
Date: _________ (Date of writing the letter).
To
____________ (Name of the receiver)
____________ (Address)
Subject: _______ (Mention the purpose)
Respected Sir/ Madam,
I am (______) name writing this letter to you in support of (_________) name of the bank. You are at this moment informed that our bank has issued a credit letter in your name for Rs(Mention the amount). We are issuing this letter to you as you have given a request. The letter has validity till (Validity Date). This expiry date will not get an extension unless the bank gives it in writing. If the bank gives a notice in writing for extending the date, then the date will be extended as per the rules and regulations specified. Please note that this credit letter is consistent with the Standard Customs and Practice for Documentary Credits, 2008 Version National Chamber of Commerce Publication, No. 590. We hope that you will follow the rules and regulations and follow the same.
Please note that this credit letter is consistent with the Standard Customs and Practice for Documentary Credits, 2008 Version National Chamber of Commerce Publication, No. 590. We hope that you will follow the rules and regulations and follow the same.
Thanking you
Yours sincerely
(Name of the Sender)
Sample Letter
From
Wealth Bank National Association
New Jersy
DD/MM/YYYY
To
Kevin Peterson
Washington D.C
Subject: Letter of credit format.
Respected Sir,
This is to inform you that Bank of Maharashtra issues an irrevocable credit in your name for an amount of $50000/-. This amount is payable on sight, and the letter of credit is issued according to your request/s S.L. Enterprises has got right to privilege the amount drawn as per the accepted terms and conditions as mentioned in the Contract by the exporter. This letter of credit is valid till 30.05.2013 and kindly note that this expiry date will not be extended unless the bank gives a notice in writing to do so.
Kindly note that this letter of credit is as per the Standard Customs and Practice for Documentary Credits, 2008 Version National Chamber of Commerce Publication, No. 590. We hope that you agree to all the terms and conditions specified and act accordingly.
Thanking you.
Yours sincerely,
Jarred James (Manager)
Wealth Bank National Association.
Email Format
This sample letter is to inform that how the letter is being drafted in email format. This is the email format to be followed.
To: name@gmail.com
From: name@gmail.com
Respected sir/madam,
This is to inform you that _______________ issues an irrevocable credit in your name for an amount of ____________.This amount is payable on sight and the letter of credit is issued according to your request/s__________has got right to privilege the amount drawn as per the accepted terms and conditions as mentioned in the Contract by the exporter. This letter of credit is valid till _______________and kindly note that this expiry date will not be extended unless the bank gives a notice in writing to do so.
Kindly note that this letter of credit is as per the Standard Customs and Practice for Documentary Credits, 2008 Version National Chamber of Commerce Publication, No. 590. We hope that you agree to all the terms and conditions specified and act accordingly.
Yours sincerely,
(Name of the sender).
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