An letter of irrevocable credit or irrevocable lc, is one which cannot be revoked or amended by the buyer without agreement from the seller.
A letter of credit is a mechanism a seller can use to reduce risk and facilitate payment for international trade. A letter of credit works by substituting the credit of a bank for that of a buyer, it is basically a guarantee to the seller that the buyers bank will make payment.
Last modified April 30th, 2019