What is Letter of Credit & How to get it financed?

Now after verification of LC we need to get it paid by financial institutions (Banks):

The final process of receipt of payment for financed Letter of Credit (LC) involves the following steps:

1. Verification of documents: Once the documents required under the LC have been presented by the beneficiary, the issuing bank will verify the documents for compliance with the terms and conditions of the LC, as well as the applicable rules and regulations.
   
2. Approval of payment: If the documents are found to be compliant, the issuing bank will approve payment to the beneficiary, either through the confirming bank (if there is one) or directly to the beneficiary’s bank account.
   
3. Transfer of funds: The issuing bank will transfer the funds required for payment of the LC to the confirming bank or the beneficiary’s bank account, as applicable.
   
4. Payment to the beneficiary: The beneficiary will receive payment for the LC, either through the confirming bank or directly to their bank account.
   
5. Repayment of finance: If the LC was financed by a bank, the beneficiary will use the proceeds of the LC to repay the financing bank, including any interest or fees incurred.
   
6. Closure of LC: Once payment has been made, the LC will be closed by the issuing bank, and the relevant parties will receive confirmation of closure.

It is important to note that the specific process of receipt of payment of financed LC may vary depending on the terms and conditions of the LC, as well as the applicable rules and regulations. Parties involved in LC transactions should carefully review and comply with the terms of the LC, as well as any applicable rules and regulations, in order to ensure a smooth and efficient payment process.

I want to add some more details to understant payment process in more detail:

The final process of receipt of payment of financed Letter of Credit (LC) involves the following steps:

1. Verification of documents: Once the documents required under the LC have been presented by the beneficiary, the issuing bank will verify the documents for compliance with the terms and conditions of the LC, as well as the applicable rules and regulations.
   
2. Approval of payment: If the documents are found to be compliant, the issuing bank will approve payment to the beneficiary, either through the confirming bank (if there is one) or directly to the beneficiary’s bank account.
   
3. Transfer of funds: The issuing bank will transfer the funds required for payment of the LC to the confirming bank or the beneficiary’s bank account, as applicable.
   
4. Payment to the beneficiary: The beneficiary will receive payment for the LC, either through the confirming bank or directly to their bank account.
   
5. Repayment of finance: If the LC was financed by a bank, the beneficiary will use the proceeds of the LC to repay the financing bank, including any interest or fees incurred.
   
6. Closure of LC: Once payment has been made, the LC will be closed by the issuing bank, and the relevant parties will receive confirmation of closure.

It is important to note that the specific process of receipt of payment of financed LC may vary depending on the terms and conditions of the LC, as well as the applicable rules and regulations. Parties involved in LC transactions should carefully review and comply with the terms of the LC, as well as any applicable rules and regulations, in order to ensure a smooth and efficient payment process.