Letter of Credit
A letter of credit is an instrument guaranteed by a Bank that enables importers and exporters exchange
goods on credit. Sterling Bank, acting at the request and on the instructions of our customer (the applicant)
or on its own behalf:
- Makes payments to or to the order of a 3rd party (the beneficiary) or is to accept or pay bills of exchange (draft) drawn by the beneficiary, or
- Authorizes another bank to effect such payment or to accept and pay such bills of exchange (drafts) or
- Authorizes another bank to negotiate against stipulated documents provided that terms and conditions of the credit are complied with.