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Letter of Credit

What do you mean by Letter of Credit?

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Letter of Credit (abbreviated as LC) is a set of documents that are very necessary for goods being transported from one country to the other.  This set comprises that of invoices, shipping documents, guarantees and others.

It is a letter of credit points out that for the customer’s ability (that is, credit limit) and in other words LC is a commitment from bank to the receiver for the payment.

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