Letter of Credit (LC) is used as a protection between two parties – such as a Customer and a Supplier – in guaranteeing a payment. It works when the Customer applies for LC from Fibon Capital to pay for ordered supplies. Once applied, the LC would be transferred from the Customer to the Supplier. After the items are delivered, the Supplier would present all necessary documents to the bank for verification. The payment would be released as soon as the bank verifies that all the documentations are in order.
