LETTER OF CREDIT A letter of credit is a document issued by - TopicsExpress

LETTER OF CREDIT A letter of credit is a document issued by a financial institution assuring payment to a seller of goods/ services provided certain documents have been presented to the bank...!!! These are documents that prove that the seller has performed the duties in contract. In return for these documents, the beneficiary receives payment from the financial institution that issued the letter of credit. The letter of credit serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay. The letter of credit can also be used to ensure that all the agreed upon standards and quality of goods are met by the supplier.. #pkr (y)

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