Nowadays, almost all Iranian banks can handle payments through LC (Letter of Credit) which is a very common way of international payment in global business. What makes international payments difficult for Iranian companies is the limited number of foreign banks which accept LC from Iranian banks. Due to sanctions held upon Iranian banks, only a few banks in each country are willing to cooperate with Iranian banks.
The good news is that these limited banks handle a great portion of Iranians` trade and business and Iranian companies usually have no issue in sending/receiving international payments. Persian banks mostly possesses branches in all big countries and in many cases, they handle payments through their foreign branches.
LC application is an easy process in Iranian banks which makes it popular for many companies working in an international level. The representative of the Iranian company (e.g its CEO or an authorized agent) refers to the bank branch, opens a regular account in the bank, fills the LC application form, attaches required documents such as insurance policy, request letter from the company, proforma invoice, etc based on the bank requirements and submits them to bank officer.
Iranian famous banks such as Melli, Tejarat, Saderat, Mellat, Refah, Keshavarzi and Parsian bank take a huge portion of LC applications daily. What matters most to these banks is the deposit of their customers in their branches and more important is the customer`s credit. If these two factors catch up an acceptable level, the bank has no issue with issuing LC for its customer. The Iranian banks usually provide their customers with the list of foreign banks they work with and the foreign company can choose the bank it wishes to work with.
LC is the most commonly used method of payment for Iranian companies in these days which has almost solved many problems caused by U.S.A sanctions. It is a fast and safe method facilitating international business and cooperation for both parties.
FAR Law Firm