Trade Finance & PaymentMultiple modes
Letter of Credit
L/CA bank undertaking to pay a beneficiary when compliant documents are presented under its terms.
Professional definition
A bank undertaking to pay a beneficiary when compliant documents are presented under its terms. Its precise legal, operational or charging effect depends on the applicable contract, carrier terms, route, jurisdiction and transport mode.
Example
Example: a logistics team records or applies “L/C” in the relevant booking, document, quotation or shipment milestone.
Where it is used
Used in trade finance & payment operations, documents, systems and commercial discussions.
Common mistakes and things to remember
Confirm the precise meaning in the governing contract, tariff, official rules and provider terms; industry usage can vary.
Source
UN Trade and Transport Facilitation guidance
Use the linked authority and applicable national guidance for current requirements.