Document background
The Letter of Credit for Services is a crucial financial instrument in international trade and domestic service transactions, particularly relevant under Swiss banking and commercial law. This document type is specifically designed for situations where traditional letters of credit (typically used for goods) need to be adapted for service-based transactions. It provides payment security to service providers while offering assurance to service recipients that payment will only be made upon proper service delivery. The document incorporates specific requirements under Swiss banking regulations, the UCP 600 guidelines, and the Swiss Code of Obligations, making it particularly suitable for high-value service contracts or situations where parties seek additional payment security through bank intermediation.
