Letter of Credit (L/C)
信用证
Also known as: LC
A bank undertaking to pay the supplier once documentary conditions are met. An L/C shifts risk to the banks and can protect both sides, but only works well when the underlying supplier is genuine — which is why verification comes first.
Related terms: telegraphic transfer · proforma invoice
Appears in these guides
- Legal Representative (法定代表人): Power, Liability, and Why It Matters to You
- Business Scope (经营范围): The Field That Decides If They Can Lawfully Export to You
- FOB vs CIF: Which Incoterm Should Importers Choose When Sourcing from China
- Importing Heat Pumps from China to the EU: Regulations, CE Marking, and Tariff Guide
- Canton Fair Phase 3: Clothing, Textiles, Footwear and Medical Devices Sourcing
- Canton Fair Complete Guide: Navigating China's Largest Sourcing Trade Show
- US Customs Clearance from China: A Step-by-Step Guide for Importers
- China Freight Rates Drop: Is Now the Right Time to Import?
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