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Home > Jargon Explained > Freight Forwarding Terms > Letter of Credit (LC) >

Letter of Credit (LC)

A Letter of Credit (LC) is a document issued by a bank on the instructions of a buyer of goods, giving the seller of the goods the right to receive payment under specified terms, when the bank receives the relevant documents (usually including an original bill of lading) within a given time period.

See also    Bill of Lading

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