Regardless of the client's situation, the bank cannot revoke its commitment without the consent of all parties involved.
The commitment by the issuing bank is confirmed by a bank in the seller's country. As long as the seller fulfills his commitments, he is sure to be paid.
This is a letter of credit with an advance, which means that the seller receives an advance before delivery of the goods.
Back-to-back letters of credit
Here, two letters of credit are used together. The beneficiary of the first is the initial seller, while the beneficiary of the second is the supplier of the raw materials, or subcontractor for services, needed to make the final product.
For more information, see