What is a Letter of Credit? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is a Letter of Credit?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

A banking instrument for trade that relies on terms and documentation to support payment for a transaction.

Understand the paperwork and deadlines carefully.

A letter of credit does not guarantee the quality of the goods themselves.

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