Direct pay letter of credit (L/C)

Direct pay letter of credit (L/C),

Definition of Direct pay letter of credit (L/C):

  1. L/C that is not paid through an advising bank but must be presented at the issuing bank for payment.

  2. Standby letter of credit arrangement (usually a third-party guarantee securing the payment of a debt instrument) in which its beneficiary looks first to the issuer of the guarantee for payment in case of a default.

Meaning of Direct pay letter of credit (L/C) & Direct pay letter of credit (L/C) Definition