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Letter of credit form of payment

术语含义 Letter of credit form of payment

A form of non-cash payments based on operations for issuing a letter of credit to a specific recipient; used for out-of-town payments. Payment for the documents presented by the supplier on the shipment of goods or the provision of services is made by the supplier's bank (in which he has a current account) at the expense of the payer's funds in his current account with another bank. In international practice, it is quite widespread and is beneficial for the exporter, as it most fully ensures the timely receipt of export earnings.

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