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L/C
)
A Letter of Credit (L/C) is the basic document for documentary credit. Documentary credit concerns a process in which a bank, at the request of a buyer of goods, undertakes to pay the seller of the goods a certain amount, subject to production of a number of clearly defined documents. Benefit for the seller is that he is sure to get his payment, for the buyer he can be sure that the seller needs to comply to all conditions stipulated in the letter of credit.
