A commercial letter of credit is the most common type of letter of credit in usage commonly known as a regular letter of credit.
COMMERCIAL LETTER OF CREDIT - DEFINITION
COMMERCIAL LETTER OF CREDIT PROCESS WITH EXAMPLE
STEP 1: SALES AGREEMENT
STEP 2: OPENING INSTRUCTIONS
Mr. Tom requests Bank of America to open a letter of credit of USD 10,000.00 in favor of Mr. Ram. The Bank of America checks Mr. Tom’s creditworthiness and completes the required formality to issue a letter of credit for this transaction.