Letter of credit serves as a payment insurance instrument in which the letter ordering party places at the user's disposal a certain amount of funds, provided that it can be used only if the contract documents related to the concerned business are delivered before the payment. This way the ordering party ensures that the principal payment of letters of credit will be used only for the purpose for which the letter of credit is opened.

The widest division of credentials is as follows:

• nostro (import, outgoing) that local importers open in favor of the foreign seller (exporter) and
• loro (export, incoming) that the foreign importer (buyer) opens for the local exporter

International business (import and especially export of products and services to foreign markets), brings great benefits to corporations in terms of increased profits, but it also requires fast and efficient support of the commercial Bank.