What is the meaning of letter of credit (LOC)?

Subtopics: L/C 

letter of credit (LOC) is a legal document issued by a buyer's bank that upon presentation of required documents payment would be made. Usually confirmed by the seller's bank, protection is given to the seller that payment will be made if the goods are shipped correctly, and protection is given to the seller that the goods will be shipped before payment is made.

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APABarry Goldsmith. (2010). letter of credit (LOC). Retrieved September 26, 2026, from http://smartdefine.org/letter_of_credit_(loc)/definitions/1157104
ChicagoBarry Goldsmith. 2010. "letter of credit (LOC)" http://smartdefine.org/letter_of_credit_(loc)/definitions/1157104 (accessed September 26, 2026).
HarvardBarry Goldsmith 2010, letter of credit (LOC), Smart Define, viewed 26 September, 2026, <http://smartdefine.org/letter_of_credit_(loc)/definitions/1157104>.
MLABarry Goldsmith. "letter of credit (LOC)" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/letter_of_credit_(loc)/definitions/1157104>