How to Apply for a Letter of Credit as an Importer
The steps an importer takes to apply for a Letter of Credit with its bank.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
An importer applies for a Letter of Credit by completing its bank's application with terms agreed in the sales contract — beneficiary, amount, dates, goods, documents and conditions — and arranging a credit line or collateral. The bank then issues the credit, usually as an MT700, to an advising bank in the seller's country.
| Application to | Issuing bank |
|---|---|
| Based on | Sales contract / proforma |
| Bank needs | Credit line or collateral |
Steps
- Agree credit terms with the seller first.
- Complete the bank's application form.
- Arrange a credit line or cash cover.
- Bank issues the MT700.
- Seller reviews; amendments if needed.
Tips
- Ask the seller to review a draft before issuance.
- Avoid conditions the seller cannot evidence with a document.
- Allow realistic shipment and presentation periods.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- US International Trade Administration — Letters of Credit
General guidance, not legal advice. Your bank examines documents independently.
Related guides
Review your LC requirements
Free snapshot in under a minute. No account needed.
Upload your Letter of Credit
PDF · up to 25 MB