Normally, the bank's customer is the importer, or the buyer of the goods. They work with the bank to issue the letter of credit to the beneficiary. The beneficiary is the exporter, otherwise known as the seller or supplier of the goods.
How to Apply for a Letter of Credit. The exporter and their bank must be satisfied with the creditworthiness of the importer's bank. Once the Sales Agreement is completed, the importer applies to their bank to open a Letter of Credit in favor of the exporter.