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Documentary Letter of Credit

Documentary letter of credit is a well-known fact that a credit facility is important, especially for the people involved in business activities. The banks or any other financial institutions issue a Documentary letter of credit, which works as an important document to denote the approval of the credit application made by a client. The bank pays the agreed amount to the seller on behalf of the client/buyer upon the receipt of documents specified in the letter of credit.

Here in the sample, a financial organization writes this letter to a credit applicant to inform him/her about the approval of the desired credit amount.

Sample Documentary Letter of Credit


John Marshall

Longeen Credit Bureau

3427, Pinna Annex

Honotres, MN 4203


Mr. Harold Clement

4748, Tulips Lane

Quetzal, MN 432

Aug 13, 2014

Dear Mr. Clement,


I am writing this letter on behalf of the board and management of the Longeen Credit Bureau. It’s my pleasure to inform you that your credit has been approved by our organization. I would like to remind you that this letter is documentary in nature and you should preserve it for future purposes.

Our records show a credit facility of $ 5, 64,000 for you. It is a reflection of your investments in our company and it clearly shows that you service your credit facility on a regular basis. We hope that you will maintain the relation as before. It’s our pleasure to have you as our client.

Yours faithfully

John Marshall

Records Officer

Longeen Credit Bureau

Given Below are a few credit letter samples for a clearer Idea.

Letter of Request Credit Note from Supplier

Standby Letter of Credit
The standby letter of credit is issued by banks or financial institutions.

Sight Letter of Credit
A letter of credit that is payable once it is presented along with the necessary documents.

Revolving Letter of Credit
A revolving letter of credit is issued by banks or financial institutions to the clients.

Credit Refusal Letter
A credit refusal letter is sent from one party to another during the course of a business, so as to inform the recipient that his/her request for a credit has been denied.

Credit Reference Letter
A credit reference letter is issued by a bank or any other financial institutions.

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