{"@context":"https://schema.org","@type":"DefinedTerm","name":"Letter of Credit (L/C)","description":"A Letter of Credit (L/C) is a payment undertaking issued by a bank: the importer's issuing bank guarantees the exporter payment upon compliant, timely presentation of specified documents – typically a commercial invoice, bill of lading, insurance certificate, and, where required, a certificate of origin. The instrument resolves a fundamental tension in cross-border trade: the exporter wants payment security before shipping; the importer wants proof of dispatch before releasing funds. By substitu","inDefinedTermSet":{"@type":"DefinedTermSet","name":"Frachtportal Logistics Glossary","url":"https://www.freight-academy.com/en/glossary"},"url":"https://www.freight-academy.com/en/glossary/letter-of-credit-lc","inLanguage":"en","dateModified":"2026-06-22T12:20:45.396705","citation":"https://iccwbo.org/business-solutions/ucp-600/","markdownMirror":"https://www.freight-academy.com/api/md/glossary/en/letter-of-credit-lc","provider":{"@type":"Organization","name":"Frachtportal","url":"https://www.freight-academy.com"},"quickSummary":"Letter of Credit (L/C) · A Letter of Credit (L/C) is a payment undertaking issued by a bank: the importer's issuing bank guarantees the exporter payment upon compliant, timely presentation of specified documents – typically a commercial invoice, bill of lading, insurance certificate, and, where required, a certificate of origin. · Quelle: https://iccwbo.org/business-solutions/ucp-600/"}