Letter of Credit
The Documentary Letter of Credit known as LC or DLC is a
written undertaking given by a bank to the seller
(beneficiary). The Letter of Credit or Documentary Letter
of Credit is a technique for financing International trade
by which a bank (issuing bank) takes the irrevocable
commitment, at the request and for the account of its
client (applicant), to pay the exporter (beneficiary)
against the handing-over of various documents complying
with the terms of the credit, proving forwarding and the
nature of the goods stipulated in the proforma invoice or
commercial contract within a set time limit.