A Letter of Credit ( LC ) acts as a financial tool ensuring prompt payment in business deals, particularly in global trade. Learn about the definition, types, operational process of LC , costs, limitations, benefits and how to apply. Learn what a letter of credit ( LC ) is, how it works, and why it is important for importers and exporters in global trade. Find out the features, characteristics, documents, fees, and parties involved in an LC arrangement. Letter of Credit ( LC ) is a credit limit that is used majorly by businesses engaged in international trade. It acts as a payment guarantee offered by Bank/NBFCs to exporters. Letter of Credit is a payment instrument in which Banks/NBFCs offer monetary guarantee to enterprises that are engaged in the import and export businesses, in case of payment delays or any default. Enterprises operating businesses overseas often deal with unknown suppliers so they require assurance of payment before ... Shop LC offers affordable, high-quality products through direct sourcing, aiming to change lives with every purchase.
