A Letter of Credit (LC) is a conditional but irrevocable undertaking issued by Tsedey to the exporter at the request of the importer to effect payment up to a stated amount within a stated time period against presentation of compliant documents. The Letter of Credit is governed by the ICC rules defined in Uniform Customs Practice (UCP) 600, NBE Directives and the Bank’s Policies and Procedures

When an importer concludes a contract with a seller indicating mode of payment as documentary collection/CA /, the importer will prepare and submit its purchase order to Tsedey Bank for approval before shipment of goods. After the Bank approves the purchase order ,the customer instructs the seller to ship the goods and sends the documents via the exporter bank

Tsedey Bank facilitates permit issuance and payments for trade deals with advance mode of payment. Under this method, the seller receives payment from the buyer prior to shipment or rendering the service. This mode of payment is appropriate for imports of small items for values not exceeding USD 5,000.00 or its equivalent in other foreign currencies. If the advance payment is more than USD 5,000 an advance payment bank guarantee for the equivalent amount should be required.