{"@context":"https://schema.org","@type":"DefinedTerm","name":"Documentary letter of credit","description":"When a cross-border sale is concluded, both parties face the challenge of payment security – a documentary letter of credit (L/C) addresses it by placing a bank's irrevocable payment commitment between buyer and seller. The importer instructs its issuing bank to pay the exporter a specified sum once a defined set of documents is presented: typically a bill of lading, commercial invoice, insurance policy, and where required an inspection certificate. The bank examines documentary compliance only,","inDefinedTermSet":{"@type":"DefinedTermSet","name":"Frachtportal Logistics Glossary","url":"https://www.freight-academy.com/en/glossary"},"url":"https://www.freight-academy.com/en/glossary/documentary-letter-of-credit","inLanguage":"en","dateModified":"2026-06-22T09:18:42.144741","citation":"https://iccwbo.org/business-solutions/banking-techniques-and-rules/documentary-credits/","markdownMirror":"https://www.freight-academy.com/api/md/glossary/en/documentary-letter-of-credit","provider":{"@type":"Organization","name":"Frachtportal","url":"https://www.freight-academy.com"},"quickSummary":"Documentary letter of credit · When a cross-border sale is concluded, both parties face the challenge of payment security – a documentary letter of credit (L/C) addresses it by placing a bank's irrevocable payment commitment between buyer and seller. · Quelle: https://iccwbo.org/business-solutions/banking-techniques-and-rules/documentary-credits/"}