Issued Letter of Credit

An Issued Letter of Credit is a financial document formally established and delivered by the issuing bank.

It guarantees that the seller will receive payment from the buyer upon fulfilling specific terms. Major types include:

• Commercial Letters of Credit: Used in trade transactions.
• Standby Letters of Credit: Serve as a safety net.
• Revolving Letters of Credit: Permit multiple transactions within a fixed period.

Banks like JPMorgan Chase, Bank of America, and Citibank typically issue these documents.