- Step 1 - You (the buyer) and the supplier sign a contract stating that payment will be made on the basis of Letter of Credit
- Step 2 - You approach ICICI Bank to issue a Letter of Credit in supplier’s favour
- Step 3 - ICICI Bank issues the Letter of Credit, advised by its own branch or correspondent bank in supplier’s country
- Step 4 - Advising Bank advises Letter of Credit to the supplier
- Step 5 - The supplier receives the Letter of Credit, sends the shipment of goods and deliver’s documents to its own bank
- Step 6 - Supplier’s bank sends the documents to ICICI Bank for payment
- Step 7 - You now pay the amount due to ICICI Bank, and get the documents in turn