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Documentary credit ((See Chapter 22 of the Vernimmen))
Documentary credit, one of the types of bank guarantees, ensures the fulfillment and settlement of trade contracts between importers and exporters. The banks of the two parties to the contract guarantee their respective clients, thus limiting the risk that goods will be delivered but not paid, or paid but not delivered. Also called letter of credit (L/C).
Documentary credit ((See Chapter 22 of the Vernimmen))
Documentary credit, one of the types of bank guarantees, ensures the fulfillment and settlement of trade contracts between importers and exporters. The banks of the two parties to the contract guarantee their respective clients, thus limiting the risk that goods will be delivered but not paid, or paid but not delivered. Also called letter of credit (L/C).
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Definition of Documentary credit - Finance dictionary
