What is realization of lc?

The realization of a letter of credit (LC) refers to the process by which the beneficiary (usually the seller) receives payment from the issuing bank upon fulfilling the conditions specified in the LC. This typically involves presenting the required documents, such as invoices and shipping documents, to the bank. Once the documents are verified and deemed compliant, the bank releases funds to the beneficiary. This process ensures that the seller is paid securely while protecting the interests of the buyer.