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.
Also known as an automatic extension letter of credit. A letter of credit that extends automatically at the end of its term. In most cases evergreen letters of credit are standby letters of credit, which commonly have an initial term of one year.