Macropact Ventures LLPMacropact Ventures

Knowledge

Understanding letters of credit

How an LC protects both sides of a cross-border deal.

A letter of credit is a bank's promise to pay the seller once agreed documentary conditions are met. It de-risks trade between parties who do not yet trust each other.

The mechanism is documentary: the bank pays against compliant documents, not against the goods themselves. Precision in documentation is therefore everything.

We structure and prepare LC documentation so conditions are met cleanly and payment is never delayed by a discrepancy.

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