A letter of credit that is payable once it is presented along with the necessary documents. An organization offering a sight letter of credit commits itself to paying the agreed amount of funds provided the provisions of the letter of credit are met.
Here in the sample provided below, an organization, which gives the credit services, writes the letter to an applicant to inform him/her that the desired amount will soon be credited.
From
Branch Manager
ICICI Bank
Adyar Branch
Chennai
To
Managing Director
Anish Kumar Spinning Mills
Adayar
Chennai
Aug 14, 2014
Dear Sir,
Ref: Letter of Credit at sight
I am writing this letter on behalf of ICICI Bank to inform you that we will be crediting your amount by this Friday.
As per your application, you have made a consignment to America. The total cost of the consignment is four lakhs. As per our record, you have already submitted the documents in the bank and we hope that your consignment has reached the destination. It will take 5 to 10 days of time to credit the amount. From your total amount of rupees four lakhs, rupees 2500 will be deducted as the bank processing charge and the rest will be credited to your account.
We are here to help you.
Thank you
Sincerely
Mr. Kalyan
Branch Manager
Standby Letter of Credit
The standby letter of credit is issued by banks or financial institutions.
Revolving Letter of Credit
A revolving letter of credit is issued by banks or financial institutions to the clients.
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.
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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