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Letter of Credit (LOC)

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A letter of credit is a payment method that enables exporters and importers to trade with a secure payment method, prepares the export documents in accordance with the L/C conditions of the exporter, and gives the assurance that the issuing bank will make the payment on behalf of the importer after the shipment processes are completed. The parties in the letter of credit; Applicant is Beneficiary, Issuing Bank, and Confirming Bank.