A supplier can draw against a letter of credit upon presentation of the required documents.

Question

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This statement is true. A letter of credit is a financial document issued by a bank that guarantees payment to a supplier or seller as long as they meet the specified conditions and provide the required documents. When the supplier or seller presents the required documents to the bank, they can receive payment, or "draw against" the letter of credit.

A Supplier Can Draw Against a Letter of Credit Upon