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Commercial Letter of Credit

Free commercial letter of credit template — a bank's payment undertaking to a seller once shipping documents for an international sale are presented.

This free commercial letter of credit covers 1. Amount and Currency, 2. Expiry, 3. Available Against, 4. Description of Goods, 5. Shipment Terms with 10 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.

Template — click to edit

Commercial Letter of Credit

Issuing Bank: [Bank Name] · L/C Number: [Number] · Date of Issue: [Date] Applicant (Buyer): [Company Name] · Beneficiary (Seller): [Company Name]

1. Amount and Currency

This Letter of Credit is issued for an amount not exceeding [Amount] [Currency].

2. Expiry

This Letter of Credit expires on [Date] at the counters of [Bank/Location].

3. Available Against

Payment is available against presentation of the following documents:

  • Commercial invoice ([Number] copies)
  • Bill of lading / airway bill
  • Packing list
  • [Certificate of origin / insurance certificate / other required documents]

4. Description of Goods

[Description, quantity, and unit price of goods, per the underlying sales contract.]

5. Shipment Terms

Shipment from [Port/Location] to [Port/Location], latest shipment date [Date]. Partial shipments: [Allowed/Not allowed]. Transshipment: [Allowed/Not allowed].

6. Confirmation

[ ] This credit is confirmed by [Confirming Bank Name] [ ] This credit is unconfirmed

7. Governing Rules

This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (UCP 600).


Authorized Signature (Issuing Bank): ______________________ Date: ____________

*Banks pay strictly against the documents presented, not against what actually shipped — a mismatched date, missing signature, or misspelled name on any required document is enough for a bank to reject a draw, so check documents against the credit's exact wording before shipping.*

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What's included

Who this template is for

Freelancers & solo founders

Handling routine business paperwork without commissioning custom legal drafting for every document.

Small businesses

Standardizing recurring documents — leases, agreements, notices — across a growing operation.

Anyone reviewing before signing

Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.

Informal lending & reimbursements

Money changing hands between people or a business and its team, without a bank's paperwork.

FAQ

Is this commercial letter of credit template really free?

Yes — this Commercial Letter of Credit template on docstoc is free to view, edit online, and download as a PDF with no account or signup required.

What does this commercial letter of credit cover?

This finance template includes 1. Amount and Currency, 2. Expiry, 3. Available Against, 4. Description of Goods. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.

Is this legal advice?

No. This covers the standard structure, not the interest-rate limits, disclosure requirements, or tax implications that can apply depending on your state and the amount involved. Check those specifics with an accountant or financial attorney before you rely on it.

Can I edit the wording?

Yes. All 10 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.

Where can I find more free templates like this?

Browse more free finance and related document templates in the docstoc library at /document-templates/.

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