What are Letters of Credit?

A traditional letter of credit is a document from a bank that guarantees payment. There are several types of letters of credit, and they provide security when buying and selling. If you are familiar with escrow services, the concept is very similar: A bank will act as a "disinterested" third party, securely holding funds with the intent of releasing them only after certain conditions are met. Letters of credit are common in international and domestic trade but are also used in transactions like construction projects.

Image


How Escaroo can be used instead of LC's

Escaroo's patent pending escrow technology is a revolution in how international & domestic trade can now be done using cryptocurrency.

Escaroo allows you to become your own bank, issuing secure LC's on your own terms

Blockchain based transactions guarantee safe, reliable and fast transfer of funds

Companies can now transact globally with cryptocurrency knowing funds are secure

Using cryptocurrency to facilitate international & domestic trade is now possible with Escaroo's patent-pending escrow service. Whether you are a Buyer/Applicant/Importer or Seller/Beneficiary/Exporter, using a cryptocurrency backed LC's opens up a whole new world of trade possibilities. Escaroo gives you the ability to be your own bank. Guaranteeing terms are agreed by both parties in the same way as a traditional method Letter of Credit, with funds only being released when all terms are met.

All funds are held within a uniquely created smart contract that is irrefutable once posted to the blockchain. This guarantees a secure transaction. Disinterested third party mediators can help ensure the transaction terms are fair for all parties, whilst guaranteeing funds are distributed as expected, providing protection for both buyers and sellers.

Take the lead in this new world of finance by partnering with Escaroo.