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2 result(s) for "LC"
FAQ
Is a Letter of Credit the same as a Bank Guarantee?
No. An LC is a primary payment mechanism used to settle a trade, while a Bank Guarantee is a secondary commitment that is only invoked if the applicant fails to perform an obligation.
FAQ
What happens if the documents don't match the LC exactly?
A mismatch is called a "discrepancy." The issuing bank can refuse payment until the discrepancy is corrected or the buyer waives it, so exporters should check documents carefully before presentation.