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International TradeID: kb-trd-004

Letter of Credit (L/C)

Financial document from a bank guaranteeing payment to a seller.

Added: March 10, 2026
Applicable: Universal

Detailed Explanation

A Letter of Credit is a promise by a bank on behalf of the buyer (importer) to pay the seller (exporter) a specified sum in the agreed currency, provided that the seller submits the required documents (like the Bill of Lading) within a strict timeframe.

Tags

#finance#payment#banking#security

Applicable Countries