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Letter of Credit vs bank guarantee

Business professionals discussing a Letter of Credit for secure international trade.

Letter of Credit (LC) Explained: Complete Guide for Beginners in 2026

    A Letter of Credit (LC) is a bank-backed payment guarantee that reduces risk in international trade by releasing funds when required documents and conditions are satisfied. The guide explains LC types, participants, procedures, benefits, risks, documentation, and best practices, while highlighting digitalization and RA Investment GmbH’s trade-finance services.