{"@context":"https://schema.org","@type":"DefinedTerm","name":"Payment clause in a letter of credit","description":"The payment clause within a letter of credit (L/C) defines precisely when and how the beneficiary – typically the exporter – receives payment once the required documents have been presented to the bank. Under a sight L/C, funds are released immediately after the nominated bank has verified that the documents comply; under a usance (deferred payment) L/C, payment falls due after an agreed period, effectively granting the buyer trade finance. The key advantage for exporters is that payment risk sh","inDefinedTermSet":{"@type":"DefinedTermSet","name":"Frachtportal Logistics Glossary","url":"https://www.freight-academy.com/en/glossary"},"url":"https://www.freight-academy.com/en/glossary/payment-clause-in-a-letter-of-credit","inLanguage":"en","dateModified":"2026-06-26T22:11:18.859817","citation":"https://iccwbo.org/business-solutions/ucp-600-for-documentary-credits/","markdownMirror":"https://www.freight-academy.com/api/md/glossary/en/payment-clause-in-a-letter-of-credit","provider":{"@type":"Organization","name":"Frachtportal","url":"https://www.freight-academy.com"},"quickSummary":"Payment clause in a letter of credit · The payment clause within a letter of credit (L/C) defines precisely when and how the beneficiary – typically the exporter – receives payment once the required documents have been presented to the bank. · Quelle: https://iccwbo.org/business-solutions/ucp-600-for-documentary-credits/"}