Letters of Credit - Developed by Chris O'Reilly

Letters of credit are used in international trade transactions of significant value, for deals between a supplier in one country and a customer in another. The parties to a letter of credit are usually a beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client. Most letters of credit are irrevocable. To find out about the stage in a commercial trade transaction, please play the game below, and select ‘easy’ or ‘hard’ options.