LETTER OF CREDIT ( DLC / LC) PROVIDER: A Letter of Credit (LC), specifically a Documentary Letter of Credit (DLC), is a financial instrument used in international trade to ensure payment security for both buyers and sellers.Here’s how it works:Buyer and Seller agree to a trade transaction.The Buyer requests their bank (the Issuing Bank) to issue a Letter of Credit in favor of the Seller.The Issuing Bank issues the LC, which guarantees that the Seller will receive payment as long as they meet the terms and conditions set in the agreement, such as submitting the required shipping documents.Once the conditions are met (e.g., providing proof of shipment), the Issuing Bank releases the payment to the Seller.This process helps mitigate risks in international trade by assuring the Seller that they will be paid as long as they fulfill the requirements, while the Buyer can be confident that payment is only made once the agreed conditions are met.At FCL-Handyware, we provide LC services to ensure secure, transparent, and reliable transactions for both parties, making global trade more efficient.