https://referently.com/tags/banking/ Recent content in banking on Referently.com Hugo -- gohugo.io en-us Sun, 17 May 2026 00:00:00 +0000 https://referently.com/letter-of-credit-vs.-standby-letter-of-credit/ Sun, 17 May 2026 00:00:00 +0000 https://referently.com/letter-of-credit-vs.-standby-letter-of-credit/ A letter of credit and a standby letter of credit are both bank-issued instruments that guarantee payment, but they are designed for fundamentally different purposes and are triggered under opposite conditions. Treating them as interchangeable is a common error with real transactional consequences. What They Are Documentary Letter of Credit (LC) A commercial or documentary LC is a payment mechanism. It is designed to be drawn upon — the expectation is that the beneficiary (typically the seller/exporter) will present the required documents and receive payment as the normal course of the transaction.