L/C
L/C — Letter of Credit,Definition Summary: A bank's guarantee of payment to the seller, conditional on meeting specified document requirements.
A Letter of Credit reduces risk for both parties. The buyer’s bank promises to pay the seller once the seller presents compliant documents (invoice, B/L, packing list, etc.). It protects the seller against non-payment and the buyer against non-shipment. L/Cs are document-driven and strict: any discrepancy can delay or void payment, so accuracy across all documents is critical.