Payment instrumentslc
LC (Letter of Credit)
Bank undertaking to pay the seller upon presentation of compliant documents.
A Letter of Credit (LC) is a bank undertaking to pay the seller (beneficiary) upon presentation of a defined set of documents — typically Bill of Lading, commercial invoice, inspection certificate, certificate of origin.
Structure: applicant (buyer) instructs issuing bank to issue the LC; the seller's advising bank notifies the seller; optionally the seller's confirming bank adds its own undertaking to reduce country risk. LCs may be "at sight" (paid immediately on compliant docs) or "usance" (paid after N days).
OilFlow's LC coordination workflow routes LC traffic to partner banks by corridor and amount as MOUs are signed. The platform facilitates — it is never a party to the LC.
See also