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Glossary Logistics / Term

Letter of Credit (LOC)

A method of payment for goods in which the buyer established his credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required, and a time limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by the buyer or takes title to the goods themselves and proceeds to transfer funds to the seller.

Permanent link Letter of Credit (LOC) - Creation date 2021-12-06


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