L/C
Business & Finance abbreviation · Logistics, Supply Chain & Trade
| Stands for | Letter of credit |
|---|---|
| Categories | Business & Finance |
L/C stands for Letter of credit, a logistics, supply chain & trade abbreviation.
Bank's written promise to pay a seller on behalf of a buyer, provided the seller presents documents, such as a bill of lading and invoice, that comply exactly with the credit's terms. It reduces payment risk in international trade.
Example: We'll ship only against an irrevocable L/C confirmed by a US bank.
Usage notes
Most letters of credit are governed by the International Chamber of Commerce's Uniform Customs and Practice for Documentary Credits, the current version being UCP 600 from 2007. Banks deal only in documents, not goods, so even small discrepancies can delay payment. Also written LC; a standby letter of credit (SBLC) works as a payment guarantee.
Related abbreviations
More logistics, supply chain & trade abbreviations
- HC – High cube container
- HS – Harmonized System
- HTS – Harmonized Tariff Schedule of the United States
- Incoterms – International Commercial Terms
- ISF – Importer Security Filing
- JIT – Just-in-time
- LCL – Less than container load
- LPN – License plate number
- LTL – Less than truckload
- MAWB – Master air waybill
- MBL – Master bill of lading
- MPS – Master production schedule