1. A Spanish exporter and an American buyer (importer) agree a sales contract. Payment will be made by documentary credit. 2. The American buyer tells the issuing bank to provide a credit line for the exporter. 3. The issuing bank asks the Spanish bank to confirm/advise the credit line. 4. The Spanish advising/confirming bank sends the letter of credit to the exporter. 5. The Spanish exporter sends the goods to the American buyer. 6. The Spanish exporter gives the shipping documents to the Spanish bank (which is the bank holding the credit). 7. The Spanish bank checks the documents and accepts the credit (pays the money). 8. The Spanish bank sends the documents to the issuing bank. 9. The issuing bank checks the documents and pays the Spanish bank. 10. The American buyer is debited by the issuing bank. 11. The issuing bank gives the documents to the American buyer. 12. Now that the buyer has the documents, they can receive the goods.