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What is Letter of Credit (LC)?

A bank promises payment to a seller if shipping papers match the deal.

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Simple Definition

A letter of is a bank's conditional payment undertaking to a seller when documents comply with LC terms.

Explanation level

Tap a persona to hear the same idea in a totally different voice.

Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.

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Letter of Credit
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