Following are the parties involved in a letter of credit :

1) Importer

2) Issuing Bank, Bank of Importer

3) Advising Bank, which is in Exporter’s country, which notifies the exporter about opening of letter of credit.

4) Confirming Bank, confirms the letter of credit in case the exporter is not satisfied about the security offered by the importer.

5) Exporter, who is the beneficiary

6) Negotiating Bank, whom the exporter submits the documents.