Plastics : Letter of Credit (LC) - Streamlining your deals -
A Letter of Credit ( LC ) is a written commitment issued by a bank on behalf of a buyer ( importer ) to pay a seller ( exporter ) a specified amount of money upon meeting certain conditions and presenting required documents. These documents typically include bills of lading , commercial invoices, insurance certificates, and inspection certificates that prove the seller has shipped the goods as agreed. Letters of Credit are particularly vital in international trade as they minimize risks for both parties. The seller is assured of payment once they fulfill the documented requirements, while the buyer is confident they'll receive the goods as specified before payment is released.
