| selected terms: 1 | | page 1 of 1 |
| | | | 1. | LC | (Letter of Credit) A document issued by a financial institution which essentially acts as an irrevocable guarantee of payment to a beneficiary. This means that if the applicant obtaining the LC fails to perform its obligations, the bank must pay. The LC can also be the source of payment for a transaction, meaning that an exporter will get paid by redeeming the letter of credit. LCs are used nowadays almost exclusively in international trade transactions of significant value, for deals | |
