What is a Letter of Credit (LC), and how does it secure international textile orders?

Short answer

A Letter of Credit is a financial guarantee issued by a buyer's bank to the seller's bank ensuring that payment will be released once the seller presents exact shipping documents (Bill of Lading, Invoice, Packing List) complying with all LC terms.

For container-scale export orders from Surat or Tiruppur:

  • Risk Mitigation: Protects both international buyers and Indian exporters by involving independent banks as financial intermediaries.

Updated 5 November 2026 Share on WhatsApp

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