![](https://cos-cdn.shuashuati.com/pipixue-wap/2020-1230-1107-56/ti_inject-812ce.png)
Translation: A letter of credit is a document issued by a bank stating its commitment to pay someone(supplier/exporter/seller) a stated amount of money on behalf of a buyer(importer) so long as the seller meets very specific term s and conditions.Letters of credit are more formally called documentary letters of credit because the banks handling the transaction deal in documents as opposed to goods.