Letter of Credit
Letter of credit
A Letter of Credit (LC) is a powerful financial instrument used in domestic and international trade to ensure trust, security, and guaranteed payment between buyer and seller. At UGMoney Capital, we offer bank-backed Letters of Credit that safeguard both parties in large business deals.
When a buyer procures goods or services, the seller often demands payment assurance. The LC acts as that assurance — guaranteeing that the seller will receive payment from the buyer’s bank once all shipment and document conditions are fulfilled. This reduces financial risk and helps businesses trade confidently across borders.
Whether you're a small business importing machinery or a large exporter dealing with overseas clients, our Letter of Credit services streamline your transactions and build credibility in trade relationships.
We offer different types of LCs, including Sight LC, Usance LC, and Revolving LC, tailored to meet your trade and credit needs. With UGMoney Capital, the process is fast, compliant, and highly secure.
Letter of credit Requirements
To apply for a Letter of Credit through UGMoney Capital, you must meet certain eligibility criteria and provide proper documentation. Here’s what you need:
- KYC documents (PAN, Aadhaar, GST Certificate)
- Valid proforma invoice or purchase agreement
- Business bank account with satisfactory credit history
- Financial statements (last 1–2 years ITR or audited balance sheets)
Why choose letter of credit
- Ensures secure trade between buyer and seller
- Boosts confidence in high-value transactions
- Minimizes risk of non-payment or delivery disputes
- Helps small businesses scale into international trade
- Builds financial credibility with new vendors and partners
- Accepted globally as a reliable mode of payment
