What is the different of dlc and lc?

Answer 1

A DLC (Documentary Letter of Credit) is a financial document used in international trade to guarantee payment to the exporter, provided that the terms specified in the letter are met. It involves a bank acting as an intermediary to ensure that the seller receives payment upon the presentation of required documents. In contrast, an LC (Letter of Credit) is a broader term that encompasses various types of credit instruments used to facilitate trade, including both documentary and standby letters of credit. Essentially, all DLCs are LCs, but not all LCs are DLCs.