LC - Letter of Credit
Letter of Credit is a document which is used in business (Specially in foreign business).
It is issued by the Bank guaranteeing that the seller will receive the payment once met the agreed delivery conditions. In case buyer unable to make payment to seller, the bank will pay the balance to the seller.
LC is specially used in international trade to protect both buyer and seller who are in different locations.
The bank of the buyers will issue the letter of credit to the bank of the seller, guaranteeing to send the agreed invoice amount to sellers bank account once the goods receive to buyer's port.
Letter of Credit is a document which is used in business (Specially in foreign business).
It is issued by the Bank guaranteeing that the seller will receive the payment once met the agreed delivery conditions. In case buyer unable to make payment to seller, the bank will pay the balance to the seller.
LC is specially used in international trade to protect both buyer and seller who are in different locations.
The bank of the buyers will issue the letter of credit to the bank of the seller, guaranteeing to send the agreed invoice amount to sellers bank account once the goods receive to buyer's port.
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