PL: Akredytywa dokumentowa (L/C) | DE: Akkreditiv (L/C)
Definition
A Letter of Credit (L/C) is a commitment by the issuing bank (importer's bank) to pay the exporter a specified amount upon presentation of documents compliant with L/C terms (invoice, bill of lading, insurance policy, certificate of origin). L/C is governed by UCP 600. It is most commonly used in trade with countries of elevated payment risk.