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Letter of Credit

Letter of Credit

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📃🔒 Understanding the Letter of Credit 🔒📃 A Letter of Credit (LC) is a crucial financial instrument in international trade, providing security and trust for both buyers and sellers. 🌐💼 Here's how it works: When a buyer (importer) and a seller (exporter) engage in a cross-border transaction, the buyer's bank issues a Letter of Credit to the seller, guaranteeing that payment will be made upon the successful completion of the agreed-upon terms and conditions. 🏦💱 The LC serves as a safeguard

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