Mastering Trade Finance: Types of Letters of Credit Every Exporter Should Know In international trade, securing payment is just as important as securing the deal. As someone actively involved in import-export, I often work with Letters of Credit (LCs) to ensure smooth, secure transactions across borders. Here’s a quick guide to the most important types of LCs: 1. Irrevocable LC – Offers the strongest protection for exporters; terms can’t be changed without mutual agreement. 2. Confirmed LC – Adds an extra layer of safety with a second bank guaranteeing payment. 3. Sight LC – Payment is made immediately upon verification of documents. 4. Usance LC – Payment is deferred, giving buyers time while ensuring sellers get paid eventually. 5. Transferable LC – Useful when working with middlemen or multiple suppliers. 6. Back-to-Back LC – Perfect for businesses like mine, where a supplier and final buyer are linked through intermediaries. 7. Standby LC – Acts more like a guarantee in case of non-performance. As a farmer and founder of an import-export company, understanding these instruments helps me close deals confidently while protecting my business and partners. If you’re looking to learn more or collaborate on global trade opportunities, feel free to connect! #LetterOfCredit #TradeFinance #ExportImport #AgriExports #SpicesExport #GlobalTrade #LCExplained #Entrepreneurship #RushilPatel