Letter of Credit:
A letter of credit (LC) is a conditional bank guarantee that provides a payment guarantee to the exporter upon the fulfilment of obligations in accordance with the specified terms of the LC. In a letter of credit, the importers bank acts as an intermediary between the importer and the exporter and guarantees, on behalf of the importer, that payment will be made to the exporter -once certain conditions are fulfilled.
Types of Letter of Credit
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