Documents
Irrevocable Letter of Credit
International payment instrument that cannot be modified or cancelled without consent of all parties involved.
International payment instrument that cannot be modified or cancelled without consent of all parties involved.
An irrevocable letter of credit is the most secure type of L/C as the issuing bank firmly commits to payment once the beneficiary presents compliant documents, with no possibility of unilateral cancellation.
Letter of Credit
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
FinancialLetter of Credit (L/C)
Payment instrument issued by a bank at the importer's request, guaranteeing the exporter payment if documentary conditions are met. The primary payment mechanism in international trade.
FinancialDocumentary Collection
Payment mechanism where the exporter's bank sends shipping documents to the importer's bank, releasing them against payment (D/P) or acceptance (D/A). Cheaper than a letter of credit.