Lc: A Letter of Credit ( LC

A Letter of Credit ( LC ) is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. A letter of credit is issued against a pledge of securities or cash. Banks typically collect a fee, ie, a percentage of the size/amount of the letter of credit. Letter of Credit ( LC ) A Letter of Credit ( LC ) is a document that guarantees the buyer’s payment to the sellers. Businesses widely use this assured form of payment in trade transactions. It is issued by a bank and ensures timely and full payment to the seller. If the buyer cannot make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. This document minimizes the risks in international trade for both the buyer and seller. A letter of credit is one of the ... Learn about the different types of LCs offered by banks in India for business owners and traders. Find out the benefits, features and differences of documentary, sight, standby, revocable, back-to-back, transferable, revolving and confirmed LCs. Guide to what is Letter of Credit (LC ) and its meaning. Here we discuss LC types, features, how it works, examples, and advantages.