Additional Mechanisms of the letter of Credit-(Voiceless PowerPoint)
A letter of credit (LC) is a bank-guaranteed payment mechanism for international trade where the importer's bank (issuing bank) pledges to pay the exporter (beneficiary) once strict documentation, proving goods shipment, is submitted. It acts as a secure, independent contract that mitigates risk by replacing the buyer's creditworthiness with the bank's, usually following UCP 600 rules.