L/C Issuer

An L/C (Letter of Credit) issuer is a bank that guarantees payment on behalf of a buyer to a seller, provided the seller meets certain documented conditions. Essentially, the issuer assures the seller they will receive payment if they fulfill the terms of the transaction, reducing risk for both parties. The bank acts as a trusted third party, ensuring that payment is made only when the specified documents and conditions are properly presented. This process helps facilitate international trade by providing confidence and security to both buyers and sellers.