HomeBanking ServicesDocumentary Credits

Documentary Credits

A Documentary credit (aka Letter of Credit) is a secure payment instrument which is used in both domestic and cross-border transactions, providing payment security for the beneficiary (seller) and delivery security for the applicant (buyer). Documentary credits (DCs) are, generally, irrevocable and definite undertaking of the issuing bank to honor complying presentations, i.e. provided that the beneficiary presents required documents as per the stipulations of the DC and they constitute a complying presentation, the issuing bank is bound to honor. Since documentary credits are very flexible and may be issued in a wide variety of forms, they can fulfill different needs of exporters and importers.
Every business has its own spirit and specific requirements. Hence, it is not practical to address requirements of different businesses with one single approach and strategy. At Karafarin Bank, we strive for providing your business with the right service and support to devise solutions tailored to your specific needs. Whether you are an importer or an exporter, Karafarin Bank can assuredly be your bank of choice. We are a leading Trade Finance bank in Iran and maintain a global network of correspondent banks. Our wide variety of services and constant support at all steps of transactions help you reinforce your position as an attractive business partner. Documentary credits are the most complex payment instruments formulation of which demands a high level of knowledge and expertise and in so doing our trade finance specialists are ready to work with you to make sure your business goals are attained. We at Karafarin Bank are ready to handle different types of sight and term DCs, from both exporter’s and importer’s sides, including but not limited to:

  • Transferable Documentary Credits
  • Advance Payment Documentary Credits (secured and unsecured)
  • Revolving Documentary Credits
  • Back-to-Back Documentary Credits

In order to arrange a free and non-binding consultation with our client advisors, please contact us:
Phone: +98 21 85513000
Address: 6 Ahmad Qassir Street, Tehran, Iran.