when pursing an iloc consider opting for a reputable bank with knowledge in iloc transactions and global trade various factors that may impact your ability to receive and trust in the iloc process include the bank s financial stability global reach and credit handling experience in many ways the iloc is not only a reflection on the buyer or applicant but a judgement on the validity of the issuing bank if applicable ensure the letter is drafted in compliance with international trade laws 
banks often have an approval process in which they intake iloc details such the desired iloc amount beneficiary information expiry date required documents and any specific terms and conditions this information is evaluated and an assessment is made not only on the transaction but on the creditworthiness of the requestor once approved the letter is prepared once issued carefully check the iloc to make sure it appropriately represents the terms and circumstances agreed upon to prevent issues throughout the payment process any discrepancies or errors should be brought up right away with the issuing bank keep an eye on the iloc s expiration date to make sure that all required documentation is provided and payment is requested within the allotted time limit the letter could become null and void if this is not done the hidden value of an iloc is the fact that it is often issued by a federally insured financial institution this level of protection is often unachievable by a seller on its own alternatives to an ilocin many cases the buyer or applicant may be able to use an alternative to an irrevocable letter of credit sometimes the buyer pays the supplier in full before receiving the goods or services as it requires a sizable upfront payment it may be less advantageous for the buyer while providing the seller with a high level of protection when there is a cash in advance requirement 