Document background
The Letter of Credit 30 Days is a fundamental trade finance instrument used in international commercial transactions where the issuing bank guarantees payment to a seller within a 30-day timeframe. This document is particularly relevant when parties seek a balanced approach between immediate payment and extended credit terms, providing security to the seller while offering the buyer a short payment buffer. Governed by Danish law and incorporating international banking practices, it includes detailed specifications of the parties involved, payment terms, required documentation, and shipping conditions. The LC is commonly used in cross-border trades where parties require a secure, bank-mediated payment method that combines the reliability of bank guarantees with short-term credit flexibility. It serves as a critical tool in international trade, helping businesses manage cash flow while maintaining trust between trading partners.
