Letter of Credit
Which LC Type Does Your Trade Deal Need?
Select your LC type and trade direction to see payment timing, risk profile, and the exact documents your bank will require.
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Risk level
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Typical bank fee
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LC Types
Letters of Credit Explained
An LC is a bank guarantee that payment will be made to the exporter once specific documentary conditions are met.
How It Works
Opening and Using a Letter of Credit
An LC involves four parties and multiple steps. Missing any one step or document can delay payment by weeks.
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Required Documents
Documents Typically Required Under an LC
Every document must comply strictly with LC terms. Banks check against the LC conditions — not the underlying trade transaction.
Discrepancies
6 Most Common LC Discrepancies
Over 70% of first document presentations contain at least one discrepancy. Banks are entitled to refuse — even for typographical errors.
FAQ
Common Questions
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