What is a letter of credit（L/C）and How can I pay for orders by way of L/C? A letter of credit is a document issued by a bank to guarantee that a buyer will pay the correct amount of money to a seller on time. It can be thought of as a cash advance (undertaking). When the supplier sends documents proving the goodswere supplied as described in the L/C, the bank either pays supplier immediately (known as sight letter of credit) or on a future date after delivery documents are presented (known as usance L/C). The buyer then pays on an agreed date. If the buyer fails to make the full payment, the bank is requires to pay the balance. For foreign trade orders with long payment period from overseas buyers, Jiangsu Hengyun launched L / C financing service, which can collect money in advance after presentation of documents, accelerate capital turnover, operate on the whole line, and make loans rapidly. A single business can be up to 90% of the amount of financing invoice, and advance payment funds to the account within 3 working days.