Letter of credit
A letter of credit is a form of international settlement in which the buyer's bank undertakes to pay the seller an agreed amount once the seller presents documents confirming shipment. It reduces the risks for both parties to the deal.
A letter of credit is convenient when working with a new counterparty: the seller is confident of payment, and the buyer knows they will pay only against documents. The terms of the letter of credit must match the contract and the shipping documents.
We will help you structure the deal and pass currency control when settling by letter of credit.
Related terms
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