How Does a Commercial Letter of Credit Work?. Commercial letters of credit are very important to your business if you import or export goods. When goods are shipped from country to country, ...

A letter of credit is a letter from a bank guaranteeing that a buyer’s payment will be received on time and for the correct amount. Here’s how letters of credit work.

Straight credit is a form of letter of credit, ... Investopedia requires writers to use primary sources to support their work. These include white papers, government data, ...