LC (Letter of Credit)
A Letter of Credit (LC) is a payment method used in international trade transactions. It guarantees that buyers’ payments to sellers will be received on time and in the correct amount. An LC allows businesses to purchase goods or services while minimizing the risk of non-payment, providing assurances to both parties that the transaction will be completed as agreed. As a secure and transparent payment obligation instrument, LCs are typically employed when dealing with trading partners unfamiliar to one another.
