An agreement or assurance by the bank of a buyer to pay a specified amount to the seller upon receipt of certain documents that prove that the goods have been shipped and that contractual obligations of the seller have been fulfilled is known as a(n):

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This is a common financing tool used in international trade to ensure that payment is made to the seller upon meeting the conditions set forth in the letter of credit. It provides assurance to both the buyer and the seller that the transaction will be completed, and reduces the risk of non-payment or non-delivery of goods.

An Agreement or Assurance by the Bank of a Buyer